[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5376 Enrolled Bill (ENR)]
H.R.5376
One Hundred Seventeenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the third day of January, two thousand and twenty-two
An Act
To provide for reconciliation pursuant to title II of S. Con. Res. 14.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I--COMMITTEE ON FINANCE
Subtitle A--Deficit Reduction
SECTION 10001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
PART 1--CORPORATE TAX REFORM
SEC. 10101. CORPORATE ALTERNATIVE MINIMUM TAX.
(a) Imposition of Tax.--
(1) In general.--Paragraph (2) of section 55(b) is amended to
read as follows:
``(2) Corporations.--
``(A) Applicable corporations.--In the case of an
applicable corporation, the tentative minimum tax for the
taxable year shall be the excess of--
``(i) 15 percent of the adjusted financial statement
income for the taxable year (as determined under section
56A), over
``(ii) the corporate AMT foreign tax credit for the
taxable year.
``(B) Other corporations.--In the case of any corporation
which is not an applicable corporation, the tentative minimum
tax for the taxable year shall be zero.''.
(2) Applicable corporation.--Section 59 is amended by adding at
the end the following new subsection:
``(k) Applicable Corporation.--For purposes of this part--
``(1) Applicable corporation defined.--
``(A) In general.--The term `applicable corporation' means,
with respect to any taxable year, any corporation (other than
an S corporation, a regulated investment company, or a real
estate investment trust) which meets the average annual
adjusted financial statement income test of subparagraph (B)
for one or more taxable years which--
``(i) are prior to such taxable year, and
``(ii) end after December 31, 2021.
``(B) Average annual adjusted financial statement income
test.--For purposes of this subsection--
``(i) a corporation meets the average annual adjusted
financial statement income test for a taxable year if the
average annual adjusted financial statement income of such
corporation (determined without regard to section 56A(d))
for the 3-taxable-year period ending with such taxable year
exceeds $1,000,000,000, and
``(ii) in the case of a corporation described in
paragraph (2), such corporation meets the average annual
adjusted financial statement income test for a taxable year
if--
``(I) the corporation meets the requirements of
clause (i) for such taxable year (determined after the
application of paragraph (2)), and
``(II) the average annual adjusted financial
statement income of such corporation (determined
without regard to the application of paragraph (2) and
without regard to section 56A(d)) for the 3-taxable-
year-period ending with such taxable year is
$100,000,000 or more.
``(C) Exception.--Notwithstanding subparagraph (A), the
term `applicable corporation' shall not include any corporation
which otherwise meets the requirements of subparagraph (A) if--
``(i) such corporation--
``(I) has a change in ownership, or
``(II) has a specified number (to be determined by
the Secretary and which shall, as appropriate, take
into account the facts and circumstances of the
taxpayer) of consecutive taxable years, including the
most recent taxable year, in which the corporation does
not meet the average annual adjusted financial
statement income test of subparagraph (B), and
``(ii) the Secretary determines that it would not be
appropriate to continue to treat such corporation as an
applicable corporation.
The preceding sentence shall not apply to any corporation if,
after the Secretary makes the determination described in clause
(ii), such corporation meets the average annual adjusted
financial statement income test of subparagraph (B) for any
taxable year beginning after the first taxable year for which
such determination applies.
``(D) Special rules for determining applicable corporation
status.--
``(i) In general.--Solely for purposes of determining
whether a corporation is an applicable corporation under
this paragraph, all adjusted financial statement income of
persons treated as a single employer with such corporation
under subsection (a) or (b) of section 52 (determined with
the modifications described in clause (ii)) shall be
treated as adjusted financial statement income of such
corporation, and adjusted financial statement income of
such corporation shall be determined without regard to
paragraphs (2)(D)(i) and (11) of section 56A(c).
``(ii) Modifications.--For purposes of this
subparagraph--
``(I) section 52(a) shall be applied by
substituting `component members' for `members', and
``(II) for purposes of applying section 52(b), the
term `trade or business' shall include any activity
treated as a trade or business under paragraph (5) or
(6) of section 469(c) (determined without regard to the
phrase `To the extent provided in regulations' in such
paragraph (6)).
``(iii) Component member.--For purposes of this
subparagraph, the term `component member' has the meaning
given such term by section 1563(b), except that the
determination shall be made without regard to section
1563(b)(2).
``(E) Other special rules.--
``(i) Corporations in existence for less than 3
years.--If the corporation was in existence for less than
3-taxable years, subparagraph (B) shall be applied on the
basis of the period during which such corporation was in
existence.
``(ii) Short taxable years.--Adjusted financial
statement income for any taxable year of less than 12
months shall be annualized by multiplying the adjusted
financial statement income for the short period by 12 and
dividing the result by the number of months in the short
period.
``(iii) Treatment of predecessors.--Any reference in
this subparagraph to a corporation shall include a
reference to any predecessor of such corporation.
``(2) Special rule for foreign-parented multinational groups.--
``(A) In general.--If a corporation is a member of a
foreign-parented multinational group for any taxable year,
then, solely for purposes of determining whether such
corporation meets the average annual adjusted financial
statement income test under paragraph (1)(B)(ii)(I) for such
taxable year, the adjusted financial statement income of such
corporation for such taxable year shall include the adjusted
financial statement income of all members of such group. Solely
for purposes of this subparagraph, adjusted financial statement
income shall be determined without regard to paragraphs
(2)(D)(i), (3), (4), and (11) of section 56A(c).
``(B) Foreign-parented multinational group.--For purposes
of subparagraph (A), the term `foreign-parented multinational
group' means, with respect to any taxable year, two or more
entities if--
``(i) at least one entity is a domestic corporation and
another entity is a foreign corporation,
``(ii) such entities are included in the same
applicable financial statement with respect to such year,
and
``(iii) either--
``(I) the common parent of such entities is a
foreign corporation, or
``(II) if there is no common parent, the entities
are treated as having a common parent which is a
foreign corporation under subparagraph (D).
``(C) Foreign corporations engaged in a trade or business
within the united states.--For purposes of this paragraph, if a
foreign corporation is engaged in a trade or business within
the United States, such trade or business shall be treated as a
separate domestic corporation that is wholly owned by the
foreign corporation.
``(D) Other rules.--The Secretary shall, applying the
principles of this section, prescribe rules for the application
of this paragraph, including rules for the determination of--
``(i) the entities (if any) which are to be to be
treated under subparagraph (B)(iii)(II) as having a common
parent which is a foreign corporation,
``(ii) the entities to be included in a foreign-
parented multinational group, and
``(iii) the common parent of a foreign-parented
multinational group.
``(3) Regulations or other guidance.--The Secretary shall
provide regulations or other guidance for the purposes of carrying
out this subsection, including regulations or other guidance--
``(A) providing a simplified method for determining whether
a corporation meets the requirements of paragraph (1), and
``'(B) addressing the application of this subsection to a
corporation that experiences a change in ownership.''.
(3) Reduction for base erosion and anti-abuse tax.--Section
55(a)(2) is amended by inserting ``plus, in the case of an
applicable corporation, the tax imposed by section 59A'' before the
period at the end.
(4) Conforming amendments.--
(A) Section 55(a) is amended by striking ``In the case of a
taxpayer other than a corporation, there'' and inserting
``There''.
(B)(i) Section 55(b)(1) is amended--
(I) by striking so much as precedes subparagraph (A)
and inserting the following:
``(1) Noncorporate taxpayers.--In the case of a taxpayer other
than a corporation--'', and
(II) by adding at the end the following new
subparagraph:
``(D) Alternative minimum taxable income.--The term
`alternative minimum taxable income' means the taxable income
of the taxpayer for the taxable year--
``(i) determined with the adjustments provided in
section 56 and section 58, and
``(ii) increased by the amount of the items of tax
preference described in section 57.
If a taxpayer is subject to the regular tax, such taxpayer
shall be subject to the tax imposed by this section (and, if
the regular tax is determined by reference to an amount other
than taxable income, such amount shall be treated as the
taxable income of such taxpayer for purposes of the preceding
sentence).''.
(ii) Section 860E(a)(4) is amended by striking ``55(b)(2)''
and inserting ``55(b)(1)(D)''.
(iii) Section 897(a)(2)(A)(i) is amended by striking
``55(b)(2)'' and inserting ``55(b)(1)(D)''.
(C) Section 11(d) is amended by striking ``the tax imposed
by subsection (a)'' and inserting ``the taxes imposed by
subsection (a) and section 55''.
(D) Section 12 is amended by adding at the end the
following new paragraph:
``(5) For alternative minimum tax, see section 55.''.
(E) Section 882(a)(1) is amended by inserting ``, 55,''
after ``section 11''.
(F) Section 6425(c)(1)(A) is amended to read as follows:
``(A) the sum of--
``(i) the tax imposed by section 11 or subchapter L of
chapter 1, whichever is applicable, plus
``(ii) the tax imposed by section 55, plus
``(iii) the tax imposed by section 59A, over''.
(G) Section 6655(e)(2) is amended by inserting ``, adjusted
financial statement income (as defined in section 56A),''
before ``and modified taxable income'' each place it appears in
subparagraphs (A)(i) and (B)(i).
(H) Section 6655(g)(1)(A) is amended by redesignating
clauses (ii) and (iii) as clauses (iii) and (iv), respectively,
and by inserting after clause (i) the following new clause:
``(ii) the tax imposed by section 55,''.
(b) Adjusted Financial Statement Income.--
(1) In general.--Part VI of subchapter A of chapter 1 is
amended by inserting after section 56 the following new section:
``SEC. 56A. ADJUSTED FINANCIAL STATEMENT INCOME.
``(a) In General.--For purposes of this part, the term `adjusted
financial statement income' means, with respect to any corporation for
any taxable year, the net income or loss of the taxpayer set forth on
the taxpayer's applicable financial statement for such taxable year,
adjusted as provided in this section.
``(b) Applicable Financial Statement.--For purposes of this
section, the term `applicable financial statement' means, with respect
to any taxable year, an applicable financial statement (as defined in
section 451(b)(3) or as specified by the Secretary in regulations or
other guidance) which covers such taxable year.
``(c) General Adjustments.--
``(1) Statements covering different taxable years.--Appropriate
adjustments shall be made in adjusted financial statement income in
any case in which an applicable financial statement covers a period
other than the taxable year.
``(2) Special rules for related entities.--
``(A) Consolidated financial statements.--If the financial
results of a taxpayer are reported on the applicable financial
statement for a group of entities, rules similar to the rules
of section 451(b)(5) shall apply.
``(B) Consolidated returns.--Except as provided in
regulations prescribed by the Secretary, if the taxpayer is
part of an affiliated group of corporations filing a
consolidated return for any taxable year, adjusted financial
statement income for such group for such taxable year shall
take into account items on the group's applicable financial
statement which are properly allocable to members of such
group.
``(C) Treatment of dividends and other amounts.--In the
case of any corporation which is not included on a consolidated
return with the taxpayer, adjusted financial statement income
of the taxpayer with respect to such other corporation shall be
determined by only taking into account the dividends received
from such other corporation (reduced to the extent provided by
the Secretary in regulations or other guidance) and other
amounts which are includible in gross income or deductible as a
loss under this chapter (other than amounts required to be
included under sections 951 and 951A or such other amounts as
provided by the Secretary) with respect to such other
corporation.
``(D) Treatment of partnerships.--
``(i) In general.--Except as provided by the Secretary,
if the taxpayer is a partner in a partnership, adjusted
financial statement income of the taxpayer with respect to
such partnership shall be adjusted to only take into
account the taxpayer's distributive share of adjusted
financial statement income of such partnership.
``(ii) Adjusted financial statement income of
partnerships.--For the purposes of this part, the adjusted
financial statement income of a partnership shall be the
partnership's net income or loss set forth on such
partnership's applicable financial statement (adjusted
under rules similar to the rules of this section).
``(3) Adjustments to take into account certain items of foreign
income.--
``(A) In general.--If, for any taxable year, a taxpayer is
a United States shareholder of one or more controlled foreign
corporations, the adjusted financial statement income of such
taxpayer with respect to such controlled foreign corporation
(as determined under paragraph (2)(C)) shall be adjusted to
also take into account such taxpayer's pro rata share
(determined under rules similar to the rules under section
951(a)(2)) of items taken into account in computing the net
income or loss set forth on the applicable financial statement
(as adjusted under rules similar to those that apply in
determining adjusted financial statement income) of each such
controlled foreign corporation with respect to which such
taxpayer is a United States shareholder.
``(B) Negative adjustments.--In any case in which the
adjustment determined under subparagraph (A) would result in a
negative adjustment for such taxable year--
``(i) no adjustment shall be made under this paragraph
for such taxable year, and
``(ii) the amount of the adjustment determined under
this paragraph for the succeeding taxable year (determined
without regard to this paragraph) shall be reduced by an
amount equal to the negative adjustment for such taxable
year.
``(4) Effectively connected income.--In the case of a foreign
corporation, to determine adjusted financial statement income, the
principles of section 882 shall apply.
``(5) Adjustments for certain taxes.--Adjusted financial
statement income shall be appropriately adjusted to disregard any
Federal income taxes, or income, war profits, or excess profits
taxes (within the meaning of section 901) with respect to a foreign
country or possession of the United States, which are taken into
account on the taxpayer's applicable financial statement. To the
extent provided by the Secretary, the preceding sentence shall not
apply to income, war profits, or excess profits taxes (within the
meaning of section 901) that are imposed by a foreign country or
possession of the United States and taken into account on the
taxpayer's applicable financial statement if the taxpayer does not
choose to have the benefits of subpart A of part III of subchapter
N for the taxable year. The Secretary shall prescribe such
regulations or other guidance as may be necessary and appropriate
to provide for the proper treatment of current and deferred taxes
for purposes of this paragraph, including the time at which such
taxes are properly taken into account.
``(6) Adjustment with respect to disregarded entities.--
Adjusted financial statement income shall be adjusted to take into
account any adjusted financial statement income of a disregarded
entity owned by the taxpayer.
``(7) Special rule for cooperatives.--In the case of a
cooperative to which section 1381 applies, the adjusted financial
statement income (determined without regard to this paragraph)
shall be reduced by the amounts referred to in section 1382(b)
(relating to patronage dividends and per-unit retain allocations)
to the extent such amounts were not otherwise taken into account in
determining adjusted financial statement income.
``(8) Rules for alaska native corporations.--Adjusted financial
statement income shall be appropriately adjusted to allow--
``(A) cost recovery and depletion attributable to property
the basis of which is determined under section 21(c) of the
Alaska Native Claims Settlement Act (43 U.S.C. 1620(c)), and
``(B) deductions for amounts payable made pursuant to
section 7(i) or section 7(j) of such Act (43 U.S.C. 1606(i) and
1606(j)) only at such time as the deductions are allowed for
tax purposes.
``(9) Amounts attributable to elections for direct payment of
certain credits.--Adjusted financial statement income shall be
appropriately adjusted to disregard any amount treated as a payment
against the tax imposed by subtitle A pursuant to an election under
section 48D(d) or 6417, to the extent such amount was not otherwise
taken into account under paragraph (5).
``(10) Consistent treatment of mortgage servicing income of
taxpayer other than a regulated investment company.--
``(A) In general.--Adjusted financial statement income
shall be adjusted so as not to include any item of income in
connection with a mortgage servicing contract any earlier than
when such income is included in gross income under any other
provision of this chapter.
``(B) Rules for amounts not representing reasonable
compensation.--The Secretary shall provide regulations to
prevent the avoidance of taxes imposed by this chapter with
respect to amounts not representing reasonable compensation (as
determined by the Secretary) with respect to a mortgage
servicing contract.
``(11) Adjustment with respect to defined benefit pensions.--
``(A) In general.--Except as otherwise provided in rules
prescribed by the Secretary in regulations or other guidance,
adjusted financial statement income shall be--
``(i) adjusted to disregard any amount of income, cost,
or expense that would otherwise be included on the
applicable financial statement in connection with any
covered benefit plan,
``(ii) increased by any amount of income in connection
with any such covered benefit plan that is included in the
gross income of the corporation under any other provision
of this chapter, and
``(iii) reduced by deductions allowed under any other
provision of this chapter with respect to any such covered
benefit plan.
``(B) Covered benefit plan.--For purposes of this
paragraph, the term `covered benefit plan' means--
``(i) a defined benefit plan (other than a
multiemployer plan described in section 414(f)) if the
trust which is part of such plan is an employees' trust
described in section 401(a) which is exempt from tax under
section 501(a),
``(ii) any qualified foreign plan (as defined in
section 404A(e)), or
``(iii) any other defined benefit plan which provides
post-employment benefits other than pension benefits.
``(12) Tax-exempt entities.--In the case of an organization
subject to tax under section 511, adjusted financial statement
income shall be appropriately adjusted to only take into account
any adjusted financial statement income--
``(A) of an unrelated trade or business (as defined in
section 513) of such organization, or
``(B) derived from debt-financed property (as defined in
section 514) to the extent that income from such property is
treated as unrelated business taxable income.
``(13) Depreciation.--Adjusted financial statement income shall
be--
``(A) reduced by depreciation deductions allowed under
section 167 with respect to property to which section 168
applies to the extent of the amount allowed as deductions in
computing taxable income for the taxable year, and
``(B) appropriately adjusted--
``(i) to disregard any amount of depreciation expense
that is taken into account on the taxpayer's applicable
financial statement with respect to such property, and
``(ii) to take into account any other item specified by
the Secretary in order to provide that such property is
accounted for in the same manner as it is accounted for
under this chapter.
``(14) Qualified wireless spectrum.--
``(A) In general.--Adjusted financial statement income
shall be--
``(i) reduced by amortization deductions allowed under
section 197 with respect to qualified wireless spectrum to
the extent of the amount allowed as deductions in computing
taxable income for the taxable year, and
``(ii) appropriately adjusted--
``(I) to disregard any amount of amortization
expense that is taken into account on the taxpayer's
applicable financial statement with respect to such
qualified wireless spectrum, and
``(II) to take into account any other item
specified by the Secretary in order to provide that
such qualified wireless spectrum is accounted for in
the same manner as it is accounted for under this
chapter.
``(B) Qualified wireless spectrum.--For purposes of this
paragraph, the term `qualified wireless spectrum' means
wireless spectrum which--
``(i) is used in the trade or business of a wireless
telecommunications carrier, and
``(ii) was acquired after December 31, 2007, and before
the date of enactment of this section.
``(15) Secretarial authority to adjust items.--The Secretary
shall issue regulations or other guidance to provide for such
adjustments to adjusted financial statement income as the Secretary
determines necessary to carry out the purposes of this section,
including adjustments--
``(A) to prevent the omission or duplication of any item,
and
``(B) to carry out the principles of part II of subchapter
C of this chapter (relating to corporate liquidations), part
III of subchapter C of this chapter (relating to corporate
organizations and reorganizations), and part II of subchapter K
of this chapter (relating to partnership contributions and
distributions).
``(d) Deduction for Financial Statement Net Operating Loss.--
``(1) In general.--Adjusted financial statement income
(determined after application of subsection (c) and without regard
to this subsection) shall be reduced by an amount equal to the
lesser of--
``(A) the aggregate amount of financial statement net
operating loss carryovers to the taxable year, or
``(B) 80 percent of adjusted financial statement income
computed without regard to the deduction allowable under this
subsection.
``(2) Financial statement net operating loss carryover.--A
financial statement net operating loss for any taxable year shall
be a financial statement net operating loss carryover to each
taxable year following the taxable year of the loss. The portion of
such loss which shall be carried to subsequent taxable years shall
be the amount of such loss remaining (if any) after the application
of paragraph (1).
``(3) Financial statement net operating loss defined.--For
purposes of this subsection, the term `financial statement net
operating loss' means the amount of the net loss (if any) set forth
on the corporation's applicable financial statement (determined
after application of subsection (c) and without regard to this
subsection) for taxable years ending after December 31, 2019.
``(e) Regulations and Other Guidance.--The Secretary shall provide
for such regulations and other guidance as necessary to carry out the
purposes of this section, including regulations and other guidance
relating to the effect of the rules of this section on partnerships
with income taken into account by an applicable corporation.''.
(2) Clerical amendment.--The table of sections for part VI of
subchapter A of chapter 1 is amended by inserting after the item
relating to section 56 the following new item:
``Sec. 56A. Adjusted financial statement income.''.
(c) Corporate AMT Foreign Tax Credit.--Section 59, as amended by
this section, is amended by adding at the end the following new
subsection:
``(l) Corporate AMT Foreign Tax Credit.--
``(1) In general.--For purposes of this part, if an applicable
corporation chooses to have the benefits of subpart A of part III
of subchapter N for any taxable year, the corporate AMT foreign tax
credit for the taxable year of the applicable corporation is an
amount equal to sum of--
``(A) the lesser of--
``(i) the aggregate of the applicable corporation's pro
rata share (as determined under section 56A(c)(3)) of the
amount of income, war profits, and excess profits taxes
(within the meaning of section 901) imposed by any foreign
country or possession of the United States which are--
``(I) taken into account on the applicable
financial statement of each controlled foreign
corporation with respect to which the applicable
corporation is a United States shareholder, and
``(II) paid or accrued (for Federal income tax
purposes) by each such controlled foreign corporation,
or
``(ii) the product of the amount of the adjustment
under section 56A(c)(3) and the percentage specified in
section 55(b)(2)(A)(i), and
``(B) in the case of an applicable corporation that is a
domestic corporation, the amount of income, war profits, and
excess profits taxes (within the meaning of section 901)
imposed by any foreign country or possession of the United
States to the extent such taxes are--
``(i) taken into account on the applicable
corporation's applicable financial statement, and
``(ii) paid or accrued (for Federal income tax
purposes) by the applicable corporation.
``(2) Carryover of excess tax paid.--For any taxable year for
which an applicable corporation chooses to have the benefits of
subpart A of part III of subchapter N, the excess of the amount
described in paragraph (1)(A)(i) over the amount described in
paragraph (1)(A)(ii) shall increase the amount described in
paragraph (1)(A)(i) in any of the first 5 succeeding taxable years
to the extent not taken into account in a prior taxable year.
``(3) Regulations or other guidance.--The Secretary shall
provide for such regulations or other guidance as is necessary to
carry out the purposes of this subsection.''.
(d) Treatment of General Business Credit.--Section 38(c)(6)(E) is
amended to read as follows:
``(E) Corporations.--In the case of a corporation--
``(i) the first sentence of paragraph (1) shall be
applied by substituting `25 percent of the taxpayer's net
income tax as exceeds $25,000' for `the greater of' and all
that follows,
``(ii) paragraph (2)(A) shall be applied without regard
to clause (ii)(I) thereof, and
``(iii) paragraph (4)(A) shall be applied without
regard to clause (ii)(I) thereof.''.
(e) Credit for Prior Year Minimum Tax Liability.--
(1) In general.--Section 53(e) is amended to read as follows:
``(e) Application to Applicable Corporations.--In the case of a
corporation--
``(1) subsection (b)(1) shall be applied by substituting `the
net minimum tax for all prior taxable years beginning after 2022'
for `the adjusted net minimum tax imposed for all prior taxable
years beginning after 1986', and
``(2) the amount determined under subsection (c)(1) shall be
increased by the amount of tax imposed under section 59A for the
taxable year.''.
(2) Conforming amendments.--Section 53(d) is amended--
(A) in paragraph (2), by striking ``, except that in the
case'' and all that follows through ``treated as zero'', and
(B) by striking paragraph (3).
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
PART 2--EXCISE TAX ON REPURCHASE OF CORPORATE STOCK
SEC. 10201. EXCISE TAX ON REPURCHASE OF CORPORATE STOCK.
(a) In General.--Subtitle D is amended by inserting after chapter
36 the following new chapter:
``CHAPTER 37--REPURCHASE OF CORPORATE STOCK
``Sec. 4501. Repurchase of corporate stock.
``SEC. 4501. REPURCHASE OF CORPORATE STOCK.
``(a) General Rule.--There is hereby imposed on each covered
corporation a tax equal to 1 percent of the fair market value of any
stock of the corporation which is repurchased by such corporation
during the taxable year.
``(b) Covered Corporation.--For purposes of this section, the term
`covered corporation' means any domestic corporation the stock of which
is traded on an established securities market (within the meaning of
section 7704(b)(1)).
``(c) Repurchase.--For purposes of this section--
``(1) In general.--The term `repurchase' means--
``(A) a redemption within the meaning of section 317(b)
with regard to the stock of a covered corporation, and
``(B) any transaction determined by the Secretary to be
economically similar to a transaction described in subparagraph
(A).
``(2) Treatment of purchases by specified affiliates.--
``(A) In general.--The acquisition of stock of a covered
corporation by a specified affiliate of such covered
corporation, from a person who is not the covered corporation
or a specified affiliate of such covered corporation, shall be
treated as a repurchase of the stock of the covered corporation
by such covered corporation.
``(B) Specified affiliate.--For purposes of this section,
the term `specified affiliate' means, with respect to any
corporation--
``(i) any corporation more than 50 percent of the stock
of which is owned (by vote or by value), directly or
indirectly, by such corporation, and
``(ii) any partnership more than 50 percent of the
capital interests or profits interests of which is held,
directly or indirectly, by such corporation.
``(3) Adjustment.--The amount taken into account under
subsection (a) with respect to any stock repurchased by a covered
corporation shall be reduced by the fair market value of any stock
issued by the covered corporation during the taxable year,
including the fair market value of any stock issued or provided to
employees of such covered corporation or employees of a specified
affiliate of such covered corporation during the taxable year,
whether or not such stock is issued or provided in response to the
exercise of an option to purchase such stock.
``(d) Special Rules for Acquisition of Stock of Certain Foreign
Corporations.--
``(1) In general.--In the case of an acquisition of stock of an
applicable foreign corporation by a specified affiliate of such
corporation (other than a foreign corporation or a foreign
partnership (unless such partnership has a domestic entity as a
direct or indirect partner)) from a person who is not the
applicable foreign corporation or a specified affiliate of such
applicable foreign corporation, for purposes of this section--
``(A) such specified affiliate shall be treated as a
covered corporation with respect to such acquisition,
``(B) such acquisition shall be treated as a repurchase of
stock of a covered corporation by such covered corporation, and
``(C) the adjustment under subsection (c)(3) shall be
determined only with respect to stock issued or provided by
such specified affiliate to employees of the specified
affiliate.
``(2) Surrogate foreign corporations.--In the case of a
repurchase of stock of a covered surrogate foreign corporation by
such covered surrogate foreign corporation, or an acquisition of
stock of a covered surrogate foreign corporation by a specified
affiliate of such corporation, for purposes of this section--
``(A) the expatriated entity with respect to such covered
surrogate foreign corporation shall be treated as a covered
corporation with respect to such repurchase or acquisition,
``(B) such repurchase or acquisition shall be treated as a
repurchase of stock of a covered corporation by such covered
corporation, and
``(C) the adjustment under subsection (c)(3) shall be
determined only with respect to stock issued or provided by
such expatriated entity to employees of the expatriated entity.
``(3) Definitions.--For purposes of this subsection--
``(A) Applicable foreign corporation.--The term `applicable
foreign corporation' means any foreign corporation the stock of
which is traded on an established securities market (within the
meaning of section 7704(b)(1)).
``(B) Covered surrogate foreign corporation.--The term
`covered surrogate foreign corporation' means any surrogate
foreign corporation (as determined under section 7874(a)(2)(B)
by substituting `September 20, 2021' for `March 4, 2003' each
place it appears) the stock of which is traded on an
established securities market (within the meaning of section
7704(b)(1)), but only with respect to taxable years which
include any portion of the applicable period with respect to
such corporation under section 7874(d)(1).
``(C) Expatriated entity.--The term `expatriated entity'
has the meaning given such term by section 7874(a)(2)(A).
``(e) Exceptions.--Subsection (a) shall not apply--
``(1) to the extent that the repurchase is part of a
reorganization (within the meaning of section 368(a)) and no gain
or loss is recognized on such repurchase by the shareholder under
chapter 1 by reason of such reorganization,
``(2) in any case in which the stock repurchased is, or an
amount of stock equal to the value of the stock repurchased is,
contributed to an employer-sponsored retirement plan, employee
stock ownership plan, or similar plan,
``(3) in any case in which the total value of the stock
repurchased during the taxable year does not exceed $1,000,000,
``(4) under regulations prescribed by the Secretary, in cases
in which the repurchase is by a dealer in securities in the
ordinary course of business,
``(5) to repurchases by a regulated investment company (as
defined in section 851) or a real estate investment trust, or
``(6) to the extent that the repurchase is treated as a
dividend for purposes of this title.
``(f) Regulations and Guidance.--The Secretary shall prescribe such
regulations and other guidance as are necessary or appropriate to carry
out, and to prevent the avoidance of, the purposes of this section,
including regulations and other guidance--
``(1) to prevent the abuse of the exceptions provided by
subsection (e),
``(2) to address special classes of stock and preferred stock,
and
``(3) for the application of the rules under subsection (d).''.
(b) Tax Not Deductible.--Paragraph (6) of section 275(a) is amended
by inserting ``37,'' before ``41''.
(c) Clerical Amendment.--The table of chapters for subtitle D is
amended by inserting after the item relating to chapter 36 the
following new item:
``Chapter 37--Repurchase of Corporate Stock''.
(d) Effective Date.--The amendments made by this section shall
apply to repurchases (within the meaning of section 4501(c) of the
Internal Revenue Code of 1986, as added by this section) of stock after
December 31, 2022.
PART 3--FUNDING THE INTERNAL REVENUE SERVICE AND IMPROVING TAXPAYER
COMPLIANCE
SEC. 10301. ENHANCEMENT OF INTERNAL REVENUE SERVICE RESOURCES.
In General.--The following sums are appropriated, out of any money
in the Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2022:
(1) Internal revenue service.--
(A) In general.--
(i) Taxpayer services.--For necessary expenses of the
Internal Revenue Service to provide taxpayer services,
including pre-filing assistance and education, filing and
account services, taxpayer advocacy services, and other
services as authorized by 5 U.S.C. 3109, at such rates as
may be determined by the Commissioner, $3,181,500,000, to
remain available until September 30, 2031: Provided, That
these amounts shall be in addition to amounts otherwise
available for such purposes.
(ii) Enforcement.--For necessary expenses for tax
enforcement activities of the Internal Revenue Service to
determine and collect owed taxes, to provide legal and
litigation support, to conduct criminal investigations
(including investigative technology), to provide digital
asset monitoring and compliance activities, to enforce
criminal statutes related to violations of internal revenue
laws and other financial crimes, to purchase and hire
passenger motor vehicles (31 U.S.C. 1343(b)), and to
provide other services as authorized by 5 U.S.C. 3109, at
such rates as may be determined by the Commissioner,
$45,637,400,000, to remain available until September 30,
2031: Provided, That these amounts shall be in addition to
amounts otherwise available for such purposes.
(iii) Operations support.--For necessary expenses of
the Internal Revenue Service to support taxpayer services
and enforcement programs, including rent payments;
facilities services; printing; postage; physical security;
headquarters and other IRS-wide administration activities;
research and statistics of income; telecommunications;
information technology development, enhancement,
operations, maintenance, and security; the hire of
passenger motor vehicles (31 U.S.C. 1343(b)); the
operations of the Internal Revenue Service Oversight Board;
and other services as authorized by 5 U.S.C. 3109, at such
rates as may be determined by the Commissioner,
$25,326,400,000, to remain available until September 30,
2031: Provided, That these amounts shall be in addition to
amounts otherwise available for such purposes.
(iv) Business systems modernization.--For necessary
expenses of the Internal Revenue Service's business systems
modernization program, including development of callback
technology and other technology to provide a more
personalized customer service but not including the
operation and maintenance of legacy systems,
$4,750,700,000, to remain available until September 30,
2031: Provided, That these amounts shall be in addition to
amounts otherwise available for such purposes.
(B) Task force to design an irs-run free ``direct efile''
tax return system.--For necessary expenses of the Internal
Revenue Service to deliver to Congress, within nine months
following the date of the enactment of this Act, a report on
(I) the cost (including options for differential coverage based
on taxpayer adjusted gross income and return complexity) of
developing and running a free direct efile tax return system,
including costs to build and administer each release, with a
focus on multi-lingual and mobile-friendly features and
safeguards for taxpayer data; (II) taxpayer opinions,
expectations, and level of trust, based on surveys, for such a
free direct efile system; and (III) the opinions of an
independent third-party on the overall feasibility, approach,
schedule, cost, organizational design, and Internal Revenue
Service capacity to deliver such a direct efile tax return
system, $15,000,000, to remain available until September 30,
2023: Provided, That these amounts shall be in addition to
amounts otherwise available for such purposes.
(2) Treasury inspector general for tax administration.--For
necessary expenses of the Treasury Inspector General for Tax
Administration in carrying out the Inspector General Act of 1978,
as amended, including purchase and hire of passenger motor vehicles
(31 U.S.C. 1343(b)); and services authorized by 5 U.S.C. 3109, at
such rates as may be determined by the Inspector General for Tax
Administration, $403,000,000, to remain available until September
30, 2031: Provided, That these amounts shall be in addition to
amounts otherwise available for such purposes.
(3) Office of tax policy.--For necessary expenses of the Office
of Tax Policy of the Department of the Treasury to carry out
functions related to promulgating regulations under the Internal
Revenue Code of 1986, $104,533,803, to remain available until
September 30, 2031: Provided, That these amounts shall be in
addition to amounts otherwise available for such purposes.
(4) United states tax court.--For necessary expenses of the
United States Tax Court, including contract reporting and other
services as authorized by 5 U.S.C. 3109; $153,000,000, to remain
available until September 30, 2031: Provided, That these amounts
shall be in addition to amounts otherwise available for such
purposes.
(5) Treasury departmental offices.--For necessary expenses of
the Departmental Offices of the Department of the Treasury to
provide for oversight and implementation support for actions by the
Internal Revenue Service to implement this Act and the amendments
made by this Act, $50,000,000, to remain available until September
30, 2031: Provided, That these amounts shall be in addition to
amounts otherwise available for such purposes.
Subtitle B--Prescription Drug Pricing Reform
PART 1--LOWERING PRICES THROUGH DRUG PRICE NEGOTIATION
SEC. 11001. PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-PRICED SINGLE
SOURCE DRUGS.
(a) Program To Lower Prices for Certain High-Priced Single Source
Drugs.--Title XI of the Social Security Act is amended by adding after
section 1184 (42 U.S.C. 1320e-3) the following new part:
``PART E--PRICE NEGOTIATION PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-
PRICED SINGLE SOURCE DRUGS
``SEC. 1191. ESTABLISHMENT OF PROGRAM.
``(a) In General.--The Secretary shall establish a Drug Price
Negotiation Program (in this part referred to as the `program'). Under
the program, with respect to each price applicability period, the
Secretary shall--
``(1) publish a list of selected drugs in accordance with
section 1192;
``(2) enter into agreements with manufacturers of selected
drugs with respect to such period, in accordance with section 1193;
``(3) negotiate and, if applicable, renegotiate maximum fair
prices for such selected drugs, in accordance with section 1194;
``(4) carry out the publication and administrative duties and
compliance monitoring in accordance with sections 1195 and 1196.
``(b) Definitions Relating to Timing.--For purposes of this part:
``(1) Initial price applicability year.--The term `initial
price applicability year' means a year (beginning with 2026).
``(2) Price applicability period.--The term `price
applicability period' means, with respect to a qualifying single
source drug, the period beginning with the first initial price
applicability year with respect to which such drug is a selected
drug and ending with the last year during which the drug is a
selected drug.
``(3) Selected drug publication date.--The term `selected drug
publication date' means, with respect to each initial price
applicability year, February 1 of the year that begins 2 years
prior to such year.
``(4) Negotiation period.--The term `negotiation period' means,
with respect to an initial price applicability year with respect to
a selected drug, the period--
``(A) beginning on the sooner of--
``(i) the date on which the manufacturer of the drug
and the Secretary enter into an agreement under section
1193 with respect to such drug; or
``(ii) February 28 following the selected drug
publication date with respect to such selected drug; and
``(B) ending on November 1 of the year that begins 2 years
prior to the initial price applicability year.
``(c) Other Definitions.--For purposes of this part:
``(1) Manufacturer.--The term `manufacturer' has the meaning
given that term in section 1847A(c)(6)(A).
``(2) Maximum fair price eligible individual.--The term
`maximum fair price eligible individual' means, with respect to a
selected drug--
``(A) in the case such drug is dispensed to the individual
at a pharmacy, by a mail order service, or by another
dispenser, an individual who is enrolled in a prescription drug
plan under part D of title XVIII or an MA-PD plan under part C
of such title if coverage is provided under such plan for such
selected drug; and
``(B) in the case such drug is furnished or administered to
the individual by a hospital, physician, or other provider of
services or supplier, an individual who is enrolled under part
B of title XVIII, including an individual who is enrolled in an
MA plan under part C of such title, if payment may be made
under part B for such selected drug.
``(3) Maximum fair price.--The term `maximum fair price' means,
with respect to a year during a price applicability period and with
respect to a selected drug (as defined in section 1192(c)) with
respect to such period, the price negotiated pursuant to section
1194, and updated pursuant to section 1195(b), as applicable, for
such drug and year.
``(4) Reference product.--The term `reference product' has the
meaning given such term in section 351(i) of the Public Health
Service Act.
``(5) Total expenditures.--The term `total expenditures'
includes, in the case of expenditures with respect to part D of
title XVIII, the total gross covered prescription drug costs (as
defined in section 1860D-15(b)(3)). The term `total expenditures'
excludes, in the case of expenditures with respect to part B of
such title, expenditures for a drug or biological product that are
bundled or packaged into the payment for another service.
``(6) Unit.--The term `unit' means, with respect to a drug or
biological product, the lowest identifiable amount (such as a
capsule or tablet, milligram of molecules, or grams) of the drug or
biological product that is dispensed or furnished.
``(d) Timing for Initial Price Applicability Year 2026.--
Notwithstanding the provisions of this part, in the case of initial
price applicability year 2026, the following rules shall apply for
purposes of implementing the program:
``(1) Subsection (b)(3) shall be applied by substituting
`September 1, 2023' for `, with respect to each initial price
applicability year, February 1 of the year that begins 2 years
prior to such year'.
``(2) Subsection (b)(4) shall be applied--
``(A) in subparagraph (A)(ii), by substituting `October 1,
2023' for `February 28 following the selected drug publication
date with respect to such selected drug'; and
``(B) in subparagraph (B), by substituting `August 1, 2024'
for `November 1 of the year that begins 2 years prior to the
initial price applicability year'.
``(3) Section 1192 shall be applied--
``(A) in subsection (b)(1)(A), by substituting `during the
period beginning on June 1, 2022, and ending on May 31, 2023'
for `during the most recent period of 12 months prior to the
selected drug publication date (but ending not later than
October 31 of the year prior to the year of such drug
publication date), with respect to such year, for which data
are available'; and
``(B) in subsection (d)(1)(A), by substituting `during the
period beginning on June 1, 2022, and ending on May 31, 2023'
for `during the most recent period for which data are available
of at least 12 months prior to the selected drug publication
date (but ending no later than October 31 of the year prior to
the year of such drug publication date), with respect to such
year'.
``(4) Section 1193(a) shall be applied by substituting `October
1, 2023' for `February 28 following the selected drug publication
date with respect to such selected drug'.
``(5) Section 1194(b)(2) shall be applied--
``(A) in subparagraph (A), by substituting `October 2,
2023' for `March 1 of the year of the selected drug publication
date, with respect to the selected drug';
``(B) in subparagraph (B), by substituting `February 1,
2024' for `the June 1 following the selected drug publication
date'; and
``(C) in subparagraph (E), by substituting `August 1, 2024'
for `the first day of November following the selected drug
publication date, with respect to the initial price
applicability year '.
``(6) Section 1195(a)(1) shall be applied by substituting
`September 1, 2024' for `November 30 of the year that is 2 years
prior to such initial price applicability year'.
``SEC. 1192. SELECTION OF NEGOTIATION-ELIGIBLE DRUGS AS SELECTED DRUGS.
``(a) In General.--Not later than the selected drug publication
date with respect to an initial price applicability year, in accordance
with subsection (b), the Secretary shall select and publish a list of--
``(1) with respect to the initial price applicability year
2026, 10 negotiation-eligible drugs described in subparagraph (A)
of subsection (d)(1), but not subparagraph (B) of such subsection,
with respect to such year (or, all (if such number is less than 10)
such negotiation-eligible drugs with respect to such year);
``(2) with respect to the initial price applicability year
2027, 15 negotiation-eligible drugs described in subparagraph (A)
of subsection (d)(1), but not subparagraph (B) of such subsection,
with respect to such year (or, all (if such number is less than 15)
such negotiation-eligible drugs with respect to such year);
``(3) with respect to the initial price applicability year
2028, 15 negotiation-eligible drugs described in subparagraph (A)
or (B) of subsection (d)(1) with respect to such year (or, all (if
such number is less than 15) such negotiation-eligible drugs with
respect to such year); and
``(4) with respect to the initial price applicability year 2029
or a subsequent year, 20 negotiation-eligible drugs described in
subparagraph (A) or (B) of subsection (d)(1), with respect to such
year (or, all (if such number is less than 20) such negotiation-
eligible drugs with respect to such year).
Subject to subsection (c)(2) and section 1194(f)(5), each drug
published on the list pursuant to the previous sentence shall be
subject to the negotiation process under section 1194 for the
negotiation period with respect to such initial price applicability
year (and the renegotiation process under such section as applicable
for any subsequent year during the applicable price applicability
period).
``(b) Selection of Drugs.--
``(1) In general.--In carrying out subsection (a), subject to
paragraph (2), the Secretary shall, with respect to an initial
price applicability year, do the following:
``(A) Rank negotiation-eligible drugs described in
subsection (d)(1) according to the total expenditures for such
drugs under parts B and D of title XVIII, as determined by the
Secretary, during the most recent period of 12 months prior to
the selected drug publication date (but ending not later than
October 31 of the year prior to the year of such drug
publication date), with respect to such year, for which data
are available, with the negotiation-eligible drugs with the
highest total expenditures being ranked the highest.
``(B) Select from such ranked drugs with respect to such
year the negotiation-eligible drugs with the highest such
rankings.
``(2) High spend part d drugs for 2026 and 2027.--With respect
to the initial price applicability year 2026 and with respect to
the initial price applicability year 2027, the Secretary shall
apply paragraph (1) as if the reference to `negotiation-eligible
drugs described in subsection (d)(1)' were a reference to
`negotiation-eligible drugs described in subsection (d)(1)(A)' and
as if the reference to `total expenditures for such drugs under
parts B and D of title XVIII' were a reference to `total
expenditures for such drugs under part D of title XVIII'.
``(c) Selected Drug.--
``(1) In general.--For purposes of this part, in accordance
with subsection (e)(2) and subject to paragraph (2), each
negotiation-eligible drug included on the list published under
subsection (a) with respect to an initial price applicability year
shall be referred to as a `selected drug' with respect to such year
and each subsequent year beginning before the first year that
begins at least 9 months after the date on which the Secretary
determines at least one drug or biological product--
``(A) is approved or licensed (as applicable)--
``(i) under section 505(j) of the Federal Food, Drug,
and Cosmetic Act using such drug as the listed drug; or
``(ii) under section 351(k) of the Public Health
Service Act using such drug as the reference product; and
``(B) is marketed pursuant to such approval or licensure.
``(2) Clarification.--A negotiation-eligible drug--
``(A) that is included on the list published under
subsection (a) with respect to an initial price applicability
year; and
``(B) for which the Secretary makes a determination
described in paragraph (1) before or during the negotiation
period with respect to such initial price applicability year;
shall not be subject to the negotiation process under section 1194
with respect to such negotiation period and shall continue to be
considered a selected drug under this part with respect to the
number of negotiation-eligible drugs published on the list under
subsection (a) with respect to such initial price applicability
year.
``(d) Negotiation-Eligible Drug.--
``(1) In general.--For purposes of this part, subject to
paragraph (2), the term `negotiation-eligible drug' means, with
respect to the selected drug publication date with respect to an
initial price applicability year, a qualifying single source drug,
as defined in subsection (e), that is described in either of the
following subparagraphs (or, with respect to the initial price
applicability year 2026 or 2027, that is described in subparagraph
(A)):
``(A) Part d high spend drugs.--The qualifying single
source drug is, determined in accordance with subsection
(e)(2), among the 50 qualifying single source drugs with the
highest total expenditures under part D of title XVIII, as
determined by the Secretary in accordance with paragraph (3),
during the most recent 12-month period for which data are
available prior to such selected drug publication date (but
ending no later than October 31 of the year prior to the year
of such drug publication date).
``(B) Part b high spend drugs.--The qualifying single
source drug is, determined in accordance with subsection
(e)(2), among the 50 qualifying single source drugs with the
highest total expenditures under part B of title XVIII, as
determined by the Secretary in accordance with paragraph (3),
during such most recent 12-month period, as described in
subparagraph (A).
``(2) Exception for small biotech drugs.--
``(A) In general.--Subject to subparagraph (C), the term
`negotiation-eligible drug' shall not include, with respect to
the initial price applicability years 2026, 2027, and 2028, a
qualifying single source drug that meets either of the
following:
``(i) Part d drugs.--The total expenditures for the
qualifying single source drug under part D of title XVIII,
as determined by the Secretary in accordance with paragraph
(3)(B), during 2021--
``(I) are equal to or less than 1 percent of the
total expenditures under such part D, as so determined,
for all covered part D drugs (as defined in section
1860D-2(e)) during such year; and
``(II) are equal to at least 80 percent of the
total expenditures under such part D, as so determined,
for all covered part D drugs for which the manufacturer
of the drug has an agreement in effect under section
1860D-14A during such year.
``(ii) Part b drugs.--The total expenditures for the
qualifying single source drug under part B of title XVIII,
as determined by the Secretary in accordance with paragraph
(3)(B), during 2021--
``(I) are equal to or less than 1 percent of the
total expenditures under such part B, as so determined,
for all qualifying single source drugs for which
payment may be made under such part B during such year;
and
``(II) are equal to at least 80 percent of the
total expenditures under such part B, as so determined,
for all qualifying single source drugs of the
manufacturer for which payment may be made under such
part B during such year.
``(B) Clarifications relating to manufacturers.--
``(i) Aggregation rule.--All persons treated as a
single employer under subsection (a) or (b) of section 52
of the Internal Revenue Code of 1986 shall be treated as
one manufacturer for purposes of this paragraph.
``(ii) Limitation.--A drug shall not be considered to
be a qualifying single source drug described in clause (i)
or (ii) of subparagraph (A) if the manufacturer of such
drug is acquired after 2021 by another manufacturer that
does not meet the definition of a specified manufacturer
under section 1860D-14C(g)(4)(B)(ii), effective at the
beginning of the plan year immediately following such
acquisition or, in the case of an acquisition before 2025,
effective January 1, 2025.
``(C) Drugs not included as small biotech drugs.--A new
formulation, such as an extended release formulation, of a
qualifying single source drug shall not be considered a
qualifying single source drug described in subparagraph (A).
``(3) Clarifications and determinations.--
``(A) Previously selected drugs and small biotech drugs
excluded.--In applying subparagraphs (A) and (B) of paragraph
(1), the Secretary shall not consider or count--
``(i) drugs that are already selected drugs; and
``(ii) for initial price applicability years 2026,
2027, and 2028, qualifying single source drugs described in
paragraph (2)(A).
``(B) Use of data.--In determining whether a qualifying
single source drug satisfies any of the criteria described in
paragraph (1) or (2), the Secretary shall use data that is
aggregated across dosage forms and strengths of the drug,
including new formulations of the drug, such as an extended
release formulation, and not based on the specific formulation
or package size or package type of the drug.
``(e) Qualifying Single Source Drug.--
``(1) In general.--For purposes of this part, the term
`qualifying single source drug' means, with respect to an initial
price applicability year, subject to paragraphs (2) and (3), a
covered part D drug (as defined in section 1860D-2(e)) that is
described in any of the following or a drug or biological product
for which payment may be made under part B of title XVIII that is
described in any of the following:
``(A) Drug products.--A drug--
``(i) that is approved under section 505(c) of the
Federal Food, Drug, and Cosmetic Act and is marketed
pursuant to such approval;
``(ii) for which, as of the selected drug publication
date with respect to such initial price applicability year,
at least 7 years will have elapsed since the date of such
approval; and
``(iii) that is not the listed drug for any drug that
is approved and marketed under section 505(j) of such Act.
``(B) Biological products.--A biological product--
``(i) that is licensed under section 351(a) of the
Public Health Service Act and is marketed under section 351
of such Act;
``(ii) for which, as of the selected drug publication
date with respect to such initial price applicability year,
at least 11 years will have elapsed since the date of such
licensure; and
``(iii) that is not the reference product for any
biological product that is licensed and marketed under
section 351(k) of such Act.
``(2) Treatment of authorized generic drugs.--
``(A) In general.--In the case of a qualifying single
source drug described in subparagraph (A) or (B) of paragraph
(1) that is the listed drug (as such term is used in section
505(j) of the Federal Food, Drug, and Cosmetic Act) or a
product described in clause (ii) of subparagraph (B), with
respect to an authorized generic drug, in applying the
provisions of this part, such authorized generic drug and such
listed drug or such product shall be treated as the same
qualifying single source drug.
``(B) Authorized generic drug defined.--For purposes of
this paragraph, the term `authorized generic drug' means--
``(i) in the case of a drug, an authorized generic drug
(as such term is defined in section 505(t)(3) of the
Federal Food, Drug, and Cosmetic Act); and
``(ii) in the case of a biological product, a product
that--
``(I) has been licensed under section 351(a) of
such Act; and
``(II) is marketed, sold, or distributed directly
or indirectly to retail class of trade under a
different labeling, packaging (other than repackaging
as the reference product in blister packs, unit doses,
or similar packaging for use in institutions), product
code, labeler code, trade name, or trade mark than the
reference product.
``(3) Exclusions.--In this part, the term `qualifying single
source drug' does not include any of the following:
``(A) Certain orphan drugs.--A drug that is designated as a
drug for only one rare disease or condition under section 526
of the Federal Food, Drug, and Cosmetic Act and for which the
only approved indication (or indications) is for such disease
or condition.
``(B) Low spend medicare drugs.--A drug or biological
product with respect to which the total expenditures under
parts B and D of title XVIII, as determined by the Secretary in
accordance with subsection (d)(3)(B)--
``(i) with respect to initial price applicability year
2026, is less than, during the period beginning on June 1,
2022, and ending on May 31, 2023, $200,000,000;
``(ii) with respect to initial price applicability year
2027, is less than, during the most recent 12-month period
applicable under subparagraphs (A) and (B) of subsection
(d)(1) for such year, the dollar amount specified in clause
(i) increased by the annual percentage increase in the
consumer price index for all urban consumers (all items;
United States city average) for the period beginning on
June 1, 2023, and ending on September 30, 2024; or
``(iii) with respect to a subsequent initial price
applicability year, is less than, during the most recent
12-month period applicable under subparagraphs (A) and (B)
of subsection (d)(1) for such year, the dollar amount
specified in this subparagraph for the previous initial
price applicability year increased by the annual percentage
increase in such consumer price index for the 12-month
period ending on September 30 of the year prior to the year
of the selected drug publication date with respect to such
subsequent initial price applicability year.
``(C) Plasma-derived products.--A biological product that
is derived from human whole blood or plasma.
``SEC. 1193. MANUFACTURER AGREEMENTS.
``(a) In General.--For purposes of section 1191(a)(2), the
Secretary shall enter into agreements with manufacturers of selected
drugs with respect to a price applicability period, by not later than
February 28 following the selected drug publication date with respect
to such selected drug, under which--
``(1) during the negotiation period for the initial price
applicability year for the selected drug, the Secretary and the
manufacturer, in accordance with section 1194, negotiate to
determine (and, by not later than the last date of such period,
agree to) a maximum fair price for such selected drug of the
manufacturer in order for the manufacturer to provide access to
such price--
``(A) to maximum fair price eligible individuals who with
respect to such drug are described in subparagraph (A) of
section 1191(c)(2) and are dispensed such drug (and to
pharmacies, mail order services, and other dispensers, with
respect to such maximum fair price eligible individuals who are
dispensed such drugs) during, subject to paragraph (2), the
price applicability period; and
``(B) to hospitals, physicians, and other providers of
services and suppliers with respect to maximum fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are furnished
or administered such drug during, subject to paragraph (2), the
price applicability period;
``(2) the Secretary and the manufacturer shall, in accordance
with section 1194, renegotiate (and, by not later than the last
date of the period of renegotiation, agree to) the maximum fair
price for such drug, in order for the manufacturer to provide
access to such maximum fair price (as so renegotiated)--
``(A) to maximum fair price eligible individuals who with
respect to such drug are described in subparagraph (A) of
section 1191(c)(2) and are dispensed such drug (and to
pharmacies, mail order services, and other dispensers, with
respect to such maximum fair price eligible individuals who are
dispensed such drugs) during any year during the price
applicability period (beginning after such renegotiation) with
respect to such selected drug; and
``(B) to hospitals, physicians, and other providers of
services and suppliers with respect to maximum fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are furnished
or administered such drug during any year described in
subparagraph (A);
``(3) subject to subsection (d), access to the maximum fair
price (including as renegotiated pursuant to paragraph (2)), with
respect to such a selected drug, shall be provided by the
manufacturer to--
``(A) maximum fair price eligible individuals, who with
respect to such drug are described in subparagraph (A) of
section 1191(c)(2), at the pharmacy, mail order service, or
other dispenser at the point-of-sale of such drug (and shall be
provided by the manufacturer to the pharmacy, mail order
service, or other dispenser, with respect to such maximum fair
price eligible individuals who are dispensed such drugs), as
described in paragraph (1)(A) or (2)(A), as applicable; and
``(B) hospitals, physicians, and other providers of
services and suppliers with respect to maximum fair price
eligible individuals who with respect to such drug are
described in subparagraph (B) of such section and are furnished
or administered such drug, as described in paragraph (1)(B) or
(2)(B), as applicable;
``(4) the manufacturer submits to the Secretary, in a form and
manner specified by the Secretary, for the negotiation period for
the price applicability period (and, if applicable, before any
period of renegotiation pursuant to section 1194(f)) with respect
to such drug--
``(A) information on the non-Federal average manufacturer
price (as defined in section 8126(h)(5) of title 38, United
States Code) for the drug for the applicable year or period;
and
``(B) information that the Secretary requires to carry out
the negotiation (or renegotiation process) under this part; and
``(5) the manufacturer complies with requirements determined by
the Secretary to be necessary for purposes of administering the
program and monitoring compliance with the program.
``(b) Agreement in Effect Until Drug Is No Longer a Selected
Drug.--An agreement entered into under this section shall be effective,
with respect to a selected drug, until such drug is no longer
considered a selected drug under section 1192(c).
``(c) Confidentiality of Information.--Information submitted to the
Secretary under this part by a manufacturer of a selected drug that is
proprietary information of such manufacturer (as determined by the
Secretary) shall be used only by the Secretary or disclosed to and used
by the Comptroller General of the United States for purposes of
carrying out this part.
``(d) Nonduplication With 340B Ceiling Price.--Under an agreement
entered into under this section, the manufacturer of a selected drug--
``(1) shall not be required to provide access to the maximum
fair price under subsection (a)(3), with respect to such selected
drug and maximum fair price eligible individuals who are eligible
to be furnished, administered, or dispensed such selected drug at a
covered entity described in section 340B(a)(4) of the Public Health
Service Act, to such covered entity if such selected drug is
subject to an agreement described in section 340B(a)(1) of such Act
and the ceiling price (defined in section 340B(a)(1) of such Act)
is lower than the maximum fair price for such selected drug; and
``(2) shall be required to provide access to the maximum fair
price to such covered entity with respect to maximum fair price
eligible individuals who are eligible to be furnished,
administered, or dispensed such selected drug at such entity at
such ceiling price in a nonduplicated amount to the ceiling price
if such maximum fair price is below the ceiling price for such
selected drug.
``SEC. 1194. NEGOTIATION AND RENEGOTIATION PROCESS.
``(a) In General.--For purposes of this part, under an agreement
under section 1193 between the Secretary and a manufacturer of a
selected drug (or selected drugs), with respect to the period for which
such agreement is in effect and in accordance with subsections (b),
(c), and (d), the Secretary and the manufacturer--
``(1) shall during the negotiation period with respect to such
drug, in accordance with this section, negotiate a maximum fair
price for such drug for the purpose described in section
1193(a)(1); and
``(2) renegotiate, in accordance with the process specified
pursuant to subsection (f), such maximum fair price for such drug
for the purpose described in section 1193(a)(2) if such drug is a
renegotiation-eligible drug under such subsection.
``(b) Negotiation Process Requirements.--
``(1) Methodology and process.--The Secretary shall develop and
use a consistent methodology and process, in accordance with
paragraph (2), for negotiations under subsection (a) that aims to
achieve the lowest maximum fair price for each selected drug.
``(2) Specific elements of negotiation process.--As part of the
negotiation process under this section, with respect to a selected
drug and the negotiation period with respect to the initial price
applicability year with respect to such drug, the following shall
apply:
``(A) Submission of information.--Not later than March 1 of
the year of the selected drug publication date, with respect to
the selected drug, the manufacturer of the drug shall submit to
the Secretary, in accordance with section 1193(a)(4), the
information described in such section.
``(B) Initial offer by secretary.--Not later than the June
1 following the selected drug publication date, the Secretary
shall provide the manufacturer of the selected drug with a
written initial offer that contains the Secretary's proposal
for the maximum fair price of the drug and a concise
justification based on the factors described in section 1194(e)
that were used in developing such offer.
``(C) Response to initial offer.--
``(i) In general.--Not later than 30 days after the
date of receipt of an initial offer under subparagraph (B),
the manufacturer shall either accept such offer or propose
a counteroffer to such offer.
``(ii) Counteroffer requirements.--If a manufacturer
proposes a counteroffer, such counteroffer--
``(I) shall be in writing; and
``(II) shall be justified based on the factors
described in subsection (e).
``(D) Response to counteroffer.--After receiving a
counteroffer under subparagraph (C), the Secretary shall
respond in writing to such counteroffer.
``(E) Deadline.--All negotiations between the Secretary and
the manufacturer of the selected drug shall end prior to the
first day of November following the selected drug publication
date, with respect to the initial price applicability year.
``(F) Limitations on offer amount.--In negotiating the
maximum fair price of a selected drug, with respect to the
initial price applicability year for the selected drug, and, as
applicable, in renegotiating the maximum fair price for such
drug, with respect to a subsequent year during the price
applicability period for such drug, the Secretary shall not
offer (or agree to a counteroffer for) a maximum fair price for
the selected drug that--
``(i) exceeds the ceiling determined under subsection
(c) for the selected drug and year; or
``(ii) as applicable, is less than the floor determined
under subsection (d) for the selected drug and year.
``(c) Ceiling for Maximum Fair Price.--
``(1) General ceiling.--
``(A) In general.--The maximum fair price negotiated under
this section for a selected drug, with respect to the first
initial price applicability year of the price applicability
period with respect to such drug, shall not exceed the lower of
the amount under subparagraph (B) or the amount under
subparagraph (C).
``(B) Subparagraph (B) amount.--An amount equal to the
following:
``(i) Covered part d drug.--In the case of a covered
part D drug (as defined in section 1860D-2(e)), the sum of
the plan specific enrollment weighted amounts for each
prescription drug plan or MA-PD plan (as determined under
paragraph (2)).
``(ii) Part b drug or biological.--In the case of a
drug or biological product for which payment may be made
under part B of title XVIII, the payment amount under
section 1847A(b)(4) for the drug or biological product for
the year prior to the year of the selected drug publication
date with respect to the initial price applicability year
for the drug or biological product.
``(C) Subparagraph (C) amount.--An amount equal to the
applicable percent described in paragraph (3), with respect to
such drug, of the following:
``(i) Initial price applicability year 2026.--In the
case of a selected drug with respect to which such initial
price applicability year is 2026, the average non-Federal
average manufacturer price for such drug for 2021 (or, in
the case that there is not an average non-Federal average
manufacturer price available for such drug for 2021, for
the first full year following the market entry for such
drug), increased by the percentage increase in the consumer
price index for all urban consumers (all items; United
States city average) from September 2021 (or December of
such first full year following the market entry), as
applicable, to September of the year prior to the year of
the selected drug publication date with respect to such
initial price applicability year.
``(ii) Initial price applicability year 2027 and
subsequent years.--In the case of a selected drug with
respect to which such initial price applicability year is
2027 or a subsequent year, the lower of--
``(I) the average non-Federal average manufacturer
price for such drug for 2021 (or, in the case that
there is not an average non-Federal average
manufacturer price available for such drug for 2021,
for the first full year following the market entry for
such drug), increased by the percentage increase in the
consumer price index for all urban consumers (all
items; United States city average) from September 2021
(or December of such first full year following the
market entry), as applicable, to September of the year
prior to the year of the selected drug publication date
with respect to such initial price applicability year;
or
``(II) the average non-Federal average manufacturer
price for such drug for the year prior to the selected
drug publication date with respect to such initial
price applicability year.
``(2) Plan specific enrollment weighted amount.--For purposes
of paragraph (1)(B)(i), the plan specific enrollment weighted
amount for a prescription drug plan or an MA-PD plan with respect
to a covered Part D drug is an amount equal to the product of--
``(A) the negotiated price of the drug under such plan
under part D of title XVIII, net of all price concessions
received by such plan or pharmacy benefit managers on behalf of
such plan, for the most recent year for which data is
available; and
``(B) a fraction--
``(i) the numerator of which is the total number of
individuals enrolled in such plan in such year; and
``(ii) the denominator of which is the total number of
individuals enrolled in a prescription drug plan or an MA-
PD plan in such year.
``(3) Applicable percent described.--For purposes of this
subsection, the applicable percent described in this paragraph is
the following:
``(A) Short-monopoly drugs and vaccines.--With respect to a
selected drug (other than an extended-monopoly drug and a long-
monopoly drug), 75 percent.
``(B) Extended-monopoly drugs.--With respect to an
extended-monopoly drug, 65 percent.
``(C) Long-monopoly drugs.--With respect to a long-monopoly
drug, 40 percent.
``(4) Extended-monopoly drug defined.--
``(A) In general.--In this part, subject to subparagraph
(B), the term `extended-monopoly drug' means, with respect to
an initial price applicability year, a selected drug for which
at least 12 years, but fewer than 16 years, have elapsed since
the date of approval of such drug under section 505(c) of the
Federal Food, Drug, and Cosmetic Act or since the date of
licensure of such drug under section 351(a) of the Public
Health Service Act, as applicable.
``(B) Exclusions.--The term `extended-monopoly drug' shall
not include any of the following:
``(i) A vaccine that is licensed under section 351 of
the Public Health Service Act and marketed pursuant to such
section.
``(ii) A selected drug for which a manufacturer had an
agreement under this part with the Secretary with respect
to an initial price applicability year that is before 2030.
``(C) Clarification.--Nothing in subparagraph (B)(ii) shall
limit the transition of a selected drug described in paragraph
(3)(A) to a long-monopoly drug if the selected drug meets the
definition of a long-monopoly drug.
``(5) Long-monopoly drug defined.--
``(A) In general.--In this part, subject to subparagraph
(B), the term `long-monopoly drug' means, with respect to an
initial price applicability year, a selected drug for which at
least 16 years have elapsed since the date of approval of such
drug under section 505(c) of the Federal Food, Drug, and
Cosmetic Act or since the date of licensure of such drug under
section 351(a) of the Public Health Service Act, as applicable.
``(B) Exclusion.--The term `long-monopoly drug' shall not
include a vaccine that is licensed under section 351 of the
Public Health Service Act and marketed pursuant to such
section.
``(6) Average non-federal average manufacturer price.--In this
part, the term `average non-Federal average manufacturer price'
means the average of the non-Federal average manufacturer price (as
defined in section 8126(h)(5) of title 38, United States Code) for
the 4 calendar quarters of the year involved.
``(d) Temporary Floor for Small Biotech Drugs.--In the case of a
selected drug that is a qualifying single source drug described in
section 1192(d)(2) and with respect to which the first initial price
applicability year of the price applicability period with respect to
such drug is 2029 or 2030, the maximum fair price negotiated under this
section for such drug for such initial price applicability year may not
be less than 66 percent of the average non-Federal average manufacturer
price for such drug (as defined in subsection (c)(6)) for 2021 (or, in
the case that there is not an average non-Federal average manufacturer
price available for such drug for 2021, for the first full year
following the market entry for such drug), increased by the percentage
increase in the consumer price index for all urban consumers (all
items; United States city average) from September 2021 (or December of
such first full year following the market entry), as applicable, to
September of the year prior to the selected drug publication date with
respect to the initial price applicability year.
``(e) Factors.--For purposes of negotiating the maximum fair price
of a selected drug under this part with the manufacturer of the drug,
the Secretary shall consider the following factors, as applicable to
the drug, as the basis for determining the offers and counteroffers
under subsection (b) for the drug:
``(1) Manufacturer-specific data.--The following data, with
respect to such selected drug, as submitted by the manufacturer:
``(A) Research and development costs of the manufacturer
for the drug and the extent to which the manufacturer has
recouped research and development costs.
``(B) Current unit costs of production and distribution of
the drug.
``(C) Prior Federal financial support for novel therapeutic
discovery and development with respect to the drug.
``(D) Data on pending and approved patent applications,
exclusivities recognized by the Food and Drug Administration,
and applications and approvals under section 505(c) of the
Federal Food, Drug, and Cosmetic Act or section 351(a) of the
Public Health Service Act for the drug.
``(E) Market data and revenue and sales volume data for the
drug in the United States.
``(2) Evidence about alternative treatments.--The following
evidence, as available, with respect to such selected drug and
therapeutic alternatives to such drug:
``(A) The extent to which such drug represents a
therapeutic advance as compared to existing therapeutic
alternatives and the costs of such existing therapeutic
alternatives.
``(B) Prescribing information approved by the Food and Drug
Administration for such drug and therapeutic alternatives to
such drug.
``(C) Comparative effectiveness of such drug and
therapeutic alternatives to such drug, taking into
consideration the effects of such drug and therapeutic
alternatives to such drug on specific populations, such as
individuals with disabilities, the elderly, the terminally ill,
children, and other patient populations.
``(D) The extent to which such drug and therapeutic
alternatives to such drug address unmet medical needs for a
condition for which treatment or diagnosis is not addressed
adequately by available therapy.
In using evidence described in subparagraph (C), the Secretary
shall not use evidence from comparative clinical effectiveness
research in a manner that treats extending the life of an elderly,
disabled, or terminally ill individual as of lower value than
extending the life of an individual who is younger, nondisabled, or
not terminally ill.
``(f) Renegotiation Process.--
``(1) In general.--In the case of a renegotiation-eligible drug
(as defined in paragraph (2)) that is selected under paragraph (3),
the Secretary shall provide for a process of renegotiation (for
years (beginning with 2028) during the price applicability period,
with respect to such drug) of the maximum fair price for such drug
consistent with paragraph (4).
``(2) Renegotiation-eligible drug defined.--In this section,
the term `renegotiation-eligible drug' means a selected drug that
is any of the following:
``(A) Addition of new indication.--A selected drug for
which a new indication is added to the drug.
``(B) Change of status to an extended-monopoly drug.--A
selected drug that--
``(i) is not an extended-monopoly or a long-monopoly
drug; and
``(ii) for which there is a change in status to that of
an extended-monopoly drug.
``(C) Change of status to a long-monopoly drug.--A selected
drug that--
``(i) is not a long-monopoly drug; and
``(ii) for which there is a change in status to that of
a long-monopoly drug.
``(D) Material changes.--A selected drug for which the
Secretary determines there has been a material change of any of
the factors described in paragraph (1) or (2) of subsection
(e).
``(3) Selection of drugs for renegotiation.--For each year
(beginning with 2028), the Secretary shall select among
renegotiation-eligible drugs for renegotiation as follows:
``(A) All extended-monopoly negotiation-eligible drugs.--
The Secretary shall select all renegotiation-eligible drugs
described in paragraph (2)(B).
``(B) All long-monopoly negotiation-eligible drugs.--The
Secretary shall select all renegotiation-eligible drugs
described in paragraph (2)(C).
``(C) Remaining drugs.--Among the remaining renegotiation-
eligible drugs described in subparagraphs (A) and (D) of
paragraph (2), the Secretary shall select renegotiation-
eligible drugs for which the Secretary expects renegotiation is
likely to result in a significant change in the maximum fair
price otherwise negotiated.
``(4) Renegotiation process.--
``(A) In general.--The Secretary shall specify the process
for renegotiation of maximum fair prices with the manufacturer
of a renegotiation-eligible drug selected for renegotiation
under this subsection.
``(B) Consistent with negotiation process.--The process
specified under subparagraph (A) shall, to the extent
practicable, be consistent with the methodology and process
established under subsection (b) and in accordance with
subsections (c), (d), and (e), and for purposes of applying
subsections (c)(1)(A) and (d), the reference to the first
initial price applicability year of the price applicability
period with respect to such drug shall be treated as the first
initial price applicability year of such period for which the
maximum fair price established pursuant to such renegotiation
applies, including for applying subsection (c)(3)(B) in the
case of renegotiation-eligible drugs described in paragraph
(3)(A) of this subsection and subsection (c)(3)(C) in the case
of renegotiation-eligible drugs described in paragraph (3)(B)
of this subsection.
``(5) Clarification.--A renegotiation-eligible drug for which
the Secretary makes a determination described in section 1192(c)(1)
before or during the period of renegotiation shall not be subject
to the renegotiation process under this section.
``(g) Clarification.--The maximum fair price for a selected drug
described in subparagraph (A) or (B) of paragraph (1) shall take effect
no later than the first day of the first calendar quarter that begins
after the date described in subparagraph (A) or (B), as applicable.
``SEC. 1195. PUBLICATION OF MAXIMUM FAIR PRICES.
``(a) In General.--With respect to an initial price applicability
year and a selected drug with respect to such year--
``(1) not later than November 30 of the year that is 2 years
prior to such initial price applicability year, the Secretary shall
publish the maximum fair price for such drug negotiated with the
manufacturer of such drug under this part; and
``(2) not later than March 1 of the year prior to such initial
price applicability year, the Secretary shall publish, subject to
section 1193(c), the explanation for the maximum fair price with
respect to the factors as applied under section 1194(e) for such
drug described in paragraph (1).
``(b) Updates.--
``(1) Subsequent year maximum fair prices.--For a selected
drug, for each year subsequent to the first initial price
applicability year of the price applicability period with respect
to such drug, with respect to which an agreement for such drug is
in effect under section 1193, not later than November 30 of the
year that is 2 years prior to such subsequent year, the Secretary
shall publish the maximum fair price applicable to such drug and
year, which shall be--
``(A) subject to subparagraph (B), the amount equal to the
maximum fair price published for such drug for the previous
year, increased by the annual percentage increase in the
consumer price index for all urban consumers (all items; United
States city average) for the 12-month period ending with the
July immediately preceding such November 30; or
``(B) in the case the maximum fair price for such drug was
renegotiated, for the first year for which such price as so
renegotiated applies, such renegotiated maximum fair price.
``(2) Prices negotiated after deadline.--In the case of a
selected drug with respect to an initial price applicability year
for which the maximum fair price is determined under this part
after the date of publication under this section, the Secretary
shall publish such maximum fair price by not later than 30 days
after the date such maximum price is so determined.
``SEC. 1196. ADMINISTRATIVE DUTIES AND COMPLIANCE MONITORING.
``(a) Administrative Duties.--For purposes of section 1191(a)(4),
the administrative duties described in this section are the following:
``(1) The establishment of procedures to ensure that the
maximum fair price for a selected drug is applied before--
``(A) any coverage or financial assistance under other
health benefit plans or programs that provide coverage or
financial assistance for the purchase or provision of
prescription drug coverage on behalf of maximum fair price
eligible individuals; and
``(B) any other discounts.
``(2) The establishment of procedures to compute and apply the
maximum fair price across different strengths and dosage forms of a
selected drug and not based on the specific formulation or package
size or package type of such drug.
``(3) The establishment of procedures to carry out the
provisions of this part, as applicable, with respect to--
``(A) maximum fair price eligible individuals who are
enrolled in a prescription drug plan under part D of title
XVIII or an MA-PD plan under part C of such title; and
``(B) maximum fair price eligible individuals who are
enrolled under part B of such title, including who are enrolled
in an MA plan under part C of such title.
``(4) The establishment of a negotiation process and
renegotiation process in accordance with section 1194.
``(5) The establishment of a process for manufacturers to
submit information described in section 1194(b)(2)(A).
``(6) The sharing with the Secretary of the Treasury of such
information as is necessary to determine the tax imposed by section
5000D of the Internal Revenue Code of 1986, including the
application of such tax to a manufacturer, producer, or importer or
the determination of any date described in section 5000D(c)(1) of
such Code. For purposes of the preceding sentence, such information
shall include--
``(A) the date on which the Secretary receives notification
of any termination of an agreement under the Medicare coverage
gap discount program under section 1860D-14A and the date on
which any subsequent agreement under such program is entered
into;
``(B) the date on which the Secretary receives notification
of any termination of an agreement under the manufacturer
discount program under section 1860D-14C and the date on which
any subsequent agreement under such program is entered into;
and
``(C) the date on which the Secretary receives notification
of any termination of a rebate agreement described in section
1927(b) and the date on which any subsequent rebate agreement
described in such section is entered into.
``(7) The establishment of procedures for purposes of applying
section 1192(d)(2)(B).
``(b) Compliance Monitoring.--The Secretary shall monitor
compliance by a manufacturer with the terms of an agreement under
section 1193 and establish a mechanism through which violations of such
terms shall be reported.
``SEC. 1197. CIVIL MONETARY PENALTIES.
``(a) Violations Relating to Offering of Maximum Fair Price.--Any
manufacturer of a selected drug that has entered into an agreement
under section 1193, with respect to a year during the price
applicability period with respect to such drug, that does not provide
access to a price that is equal to or less than the maximum fair price
for such drug for such year--
``(1) to a maximum fair price eligible individual who with
respect to such drug is described in subparagraph (A) of section
1191(c)(2) and who is dispensed such drug during such year (and to
pharmacies, mail order services, and other dispensers, with respect
to such maximum fair price eligible individuals who are dispensed
such drugs); or
``(2) to a hospital, physician, or other provider of services
or supplier with respect to maximum fair price eligible individuals
who with respect to such drug is described in subparagraph (B) of
such section and is furnished or administered such drug by such
hospital, physician, or provider or supplier during such year;
shall be subject to a civil monetary penalty equal to ten times the
amount equal to the product of the number of units of such drug so
furnished, dispensed, or administered during such year and the
difference between the price for such drug made available for such year
by such manufacturer with respect to such individual or hospital,
physician, provider of services, or supplier and the maximum fair price
for such drug for such year.
``(b) Violations of Certain Terms of Agreement.--Any manufacturer
of a selected drug that has entered into an agreement under section
1193, with respect to a year during the price applicability period with
respect to such drug, that is in violation of a requirement imposed
pursuant to section 1193(a)(5), including the requirement to submit
information pursuant to section 1193(a)(4), shall be subject to a civil
monetary penalty equal to $1,000,000 for each day of such violation.
``(c) False Information.--Any manufacturer that knowingly provides
false information pursuant to section 1196(a)(7) shall be subject to a
civil monetary penalty equal to $100,000,000 for each item of such
false information.
``(d) Application.--The provisions of section 1128A (other than
subsections (a) and (b)) shall apply to a civil monetary penalty under
this section in the same manner as such provisions apply to a penalty
or proceeding under section 1128A(a).
``SEC. 1198. LIMITATION ON ADMINISTRATIVE AND JUDICIAL REVIEW.
``There shall be no administrative or judicial review of any of the
following:
``(1) The determination of a unit, with respect to a drug or
biological product, pursuant to section 1191(c)(6).
``(2) The selection of drugs under section 1192(b), the
determination of negotiation-eligible drugs under section 1192(d),
and the determination of qualifying single source drugs under
section 1192(e).
``(3) The determination of a maximum fair price under
subsection (b) or (f) of section 1194.
``(4) The determination of renegotiation-eligible drugs under
section 1194(f)(2) and the selection of renegotiation-eligible
drugs under section 1194(f)(3).''.
(b) Application of Maximum Fair Prices and Conforming Amendments.--
(1) Under medicare.--
(A) Application to payments under part b.--Section
1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 1395w-
3a(b)(1)(B)) is amended by inserting ``or in the case of such a
drug or biological product that is a selected drug (as referred
to in section 1192(c)), with respect to a price applicability
period (as defined in section 1191(b)(2)), 106 percent of the
maximum fair price (as defined in section 1191(c)(3))
applicable for such drug and a year during such period'' after
``paragraph (4)''.
(B) Application under ma of cost-sharing for part b drugs
based off of negotiated price.--Section 1852(a)(1)(B)(iv) of
the Social Security Act (42 U.S.C. 1395w-22(a)(1)(B)(iv)) is
amended--
(i) by redesignating subclause (VII) as subclause
(VIII); and
(ii) by inserting after subclause (VI) the following
subclause:
``(VII) A drug or biological product that is a
selected drug (as referred to in section 1192(c)).''.
(C) Exception to part D non-interference.--Section 1860D-
11(i) of the Social Security Act (42 U.S.C. 1395w-111(i)) is
amended--
(i) in paragraph (1), by striking ``and'' at the end;
(ii) in paragraph (2), by striking ``or institute a
price structure for the reimbursement of covered part D
drugs.'' and inserting ``, except as provided under section
1860D-4(b)(3)(l); and''; and
(iii) by adding at the end the following new paragraph:
``(3) may not institute a price structure for the reimbursement
of covered part D drugs, except as provided under part E of title
XI.''.
(D) Application as negotiated price under part d.--Section
1860D-2(d)(1) of the Social Security Act (42 U.S.C. 1395w-
102(d)(1)) is amended--
(i) in subparagraph (B), by inserting ``, subject to
subparagraph (D),'' after ``negotiated prices''; and
(ii) by adding at the end the following new
subparagraph:
``(D) Application of maximum fair price for selected
drugs.--In applying this section, in the case of a covered part
D drug that is a selected drug (as referred to in section
1192(c)), with respect to a price applicability period (as
defined in section 1191(b)(2)), the negotiated prices used for
payment (as described in this subsection) shall be no greater
than the maximum fair price (as defined in section 1191(c)(3))
for such drug and for each year during such period plus any
dispensing fees for such drug.''.
(E) Coverage of selected drugs.--Section 1860D-4(b)(3) of
the Social Security Act (42 U.S.C. 1395w-104(b)(3)) is amended
by adding at the end the following new subparagraph:
``(I) Required inclusion of selected drugs.--
``(i) In general.--For 2026 and each subsequent year,
the PDP sponsor offering a prescription drug plan shall
include each covered part D drug that is a selected drug
under section 1192 for which a maximum fair price (as
defined in section 1191(c)(3)) is in effect with respect to
the year.
``(ii) Clarification.--Nothing in clause (i) shall be
construed as prohibiting a PDP sponsor from removing such a
selected drug from a formulary if such removal would be
permitted under section 423.120(b)(5)(iv) of title 42, Code
of Federal Regulations (or any successor regulation).''.
(F) Information from prescription drug plans and ma-pd
plans required.--
(i) Prescription drug plans.--Section 1860D-12(b) of
the Social Security Act (42 U.S.C. 1395w-112(b)) is amended
by adding at the end the following new paragraph:
``(8) Provision of information related to maximum fair
prices.--Each contract entered into with a PDP sponsor under this
part with respect to a prescription drug plan offered by such
sponsor shall require the sponsor to provide information to the
Secretary as requested by the Secretary for purposes of carrying
out section 1194.''.
(ii) MA-PD plans.--Section 1857(f)(3) of the Social
Security Act (42 U.S.C. 1395w-27(f)(3)) is amended by
adding at the end the following new subparagraph:
``(E) Provision of information related to maximum fair
prices.--Section 1860D-12(b)(8).''.
(G) Conditions for coverage.--
(i) Medicare part d.--Section 1860D-43(c) of the Social
Security Act (42 U.S.C. 1395w-153(c)) is amended--
(I) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(II) by striking ``Agreements.--Subsection'' and
inserting the following: ``Agreements.--
``(1) In general.--Subject to paragraph (2), subsection''; and
(III) by adding at the end the following new
paragraph:
``(2) Exception.--Paragraph (1)(A) shall not apply to a covered
part D drug of a manufacturer for any period described in section
5000D(c)(1) of the Internal Revenue Code of 1986 with respect to
the manufacturer.''.
(ii) Medicaid and medicare part b.--Section 1927(a)(3)
of the Social Security Act (42 U.S.C. 1396r-8(a)(3)) is
amended by adding at the end the following new sentence:
``The preceding sentence shall not apply to a single source
drug or innovator multiple source drug of a manufacturer
for any period described in section 5000D(c)(1) of the
Internal Revenue Code of 1986 with respect to the
manufacturer.''.
(H) Disclosure of information under medicare part d.--
(i) Contract requirements.--Section 1860D-
12(b)(3)(D)(i) of the Social Security Act (42 U.S.C. 1395w-
112(b)(3)(D)(i)) is amended by inserting ``, or carrying
out part E of title XI'' after ``appropriate)''.
(ii) Subsidies.--Section 1860D-15(f)(2)(A)(i) of the
Social Security Act (42 U.S.C. 1395w-115(f)(2)(A)(i)) is
amended by inserting ``or part E of title XI'' after ``this
section''.
(2) Drug price negotiation program prices included in best
price.--Section 1927(c)(1)(C) of the Social Security Act (42 U.S.C.
1396r-8(c)(1)(C)) is amended--
(A) in clause (i)(VI), by striking ``any prices charged''
and inserting ``subject to clause (ii)(V), any prices
charged''; and
(B) in clause (ii)--
(i) in subclause (III), by striking ``; and'' at the
end;
(ii) in subclause (IV), by striking the period at the
end and inserting ``; and''; and
(iii) by adding at the end the following new subclause:
``(V) in the case of a rebate period and a covered
outpatient drug that is a selected drug (as referred to
in section 1192(c)) during such rebate period, shall be
inclusive of the maximum fair price (as defined in
section 1191(c)(3)) for such drug with respect to such
period.''.
(3) Maximum fair prices excluded from average manufacturer
price.--Section 1927(k)(1)(B)(i) of the Social Security Act (42
U.S.C. 1396r-8(k)(1)(B)(i)) is amended--
(A) in subclause (IV) by striking ``; and'' at the end;
(B) in subclause (V) by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following new subclause:
``(VI) any reduction in price paid during the
rebate period to the manufacturer for a drug by reason
of application of part E of title XI.''.
(c) Implementation for 2026 Through 2028.--The Secretary of Health
and Human Services shall implement this section, including the
amendments made by this section, for 2026, 2027, and 2028 by program
instruction or other forms of program guidance.
SEC. 11002. SPECIAL RULE TO DELAY SELECTION AND NEGOTIATION OF
BIOLOGICS FOR BIOSIMILAR MARKET ENTRY.
(a) In General.--Part E of title XI of the Social Security Act, as
added by section 11001, is amended--
(1) in section 1192--
(A) in subsection (a), in the flush matter following
paragraph (4), by inserting ``and subsection (b)(3)'' after
``the previous sentence'';
(B) in subsection (b)--
(i) in paragraph (1), by adding at the end the
following new subparagraph:
``(C) In the case of a biological product for which the
inclusion of the biological product as a selected drug on a
list published under subsection (a) has been delayed under
subsection (f)(2), remove such biological product from the
rankings under subparagraph (A) before making the selections
under subparagraph (B).''; and
(ii) by adding at the end the following new paragraph:
``(3) Inclusion of delayed biological products.--Pursuant to
subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2), the
Secretary shall select and include on the list published under
subsection (a) the biological products described in such
subparagraphs. Such biological products shall count towards the
required number of drugs to be selected under subsection (a)(1).'';
and
(C) by adding at the end the following new subsection:
``(f) Special Rule To Delay Selection and Negotiation of Biologics
for Biosimilar Market Entry.--
``(1) Application.--
``(A) In general.--Subject to subparagraph (B), in the case
of a biological product that would (but for this subsection) be
an extended-monopoly drug (as defined in section 1194(c)(4))
included as a selected drug on the list published under
subsection (a) with respect to an initial price applicability
year, the rules described in paragraph (2) shall apply if the
Secretary determines that there is a high likelihood (as
described in paragraph (3)) that a biosimilar biological
product (for which such biological product will be the
reference product) will be licensed and marketed under section
351(k) of the Public Health Service Act before the date that is
2 years after the selected drug publication date with respect
to such initial price applicability year.
``(B) Request required.--
``(i) In general.--The Secretary shall not provide for
a delay under--
``(I) paragraph (2)(A) unless a request is made for
such a delay by a manufacturer of a biosimilar
biological product prior to the selected drug
publication date for the list published under
subsection (a) with respect to the initial price
applicability year for which the biological product may
have been included as a selected drug on such list but
for subparagraph (2)(A); or
``(II) paragraph (2)(B)(iii) unless a request is
made for such a delay by such a manufacturer prior to
the selected drug publication date for the list
published under subsection (a) with respect to the
initial price applicability year that is 1 year after
the initial price applicability year for which the
biological product described in subsection (a) would
have been included as a selected drug on such list but
for paragraph (2)(A).
``(ii) Information and documents.--
``(I) In general.--A request made under clause (i)
shall be submitted to the Secretary by such
manufacturer at a time and in a form and manner
specified by the Secretary, and contain--
``(aa) information and documents necessary for
the Secretary to make determinations under this
subsection, as specified by the Secretary and
including, to the extent available, items described
in subclause (III); and
``(bb) all agreements related to the biosimilar
biological product filed with the Federal Trade
Commission or the Assistant Attorney General
pursuant to subsections (a) and (c) of section 1112
of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003.
``(II) Additional information and documents.--After
the Secretary has reviewed the request and materials
submitted under subclause (I), the manufacturer shall
submit any additional information and documents
requested by the Secretary necessary to make
determinations under this subsection.
``(III) Items described.--The items described in
this clause are the following:
``(aa) The manufacturing schedule for such
biosimilar biological product submitted to the Food
and Drug Administration during its review of the
application under such section 351(k).
``(bb) Disclosures (in filings by the
manufacturer of such biosimilar biological product
with the Securities and Exchange Commission
required under section 12(b), 12(g), 13(a), or
15(d) of the Securities Exchange Act of 1934 about
capital investment, revenue expectations, and
actions taken by the manufacturer that are typical
of the normal course of business in the year (or
the 2 years, as applicable) before marketing of a
biosimilar biological product) that pertain to the
marketing of such biosimilar biological product, or
comparable documentation that is distributed to the
shareholders of privately held companies.
``(C) Aggregation rule.--
``(i) In general.--All persons treated as a single
employer under subsection (a) or (b) of section 52 of the
Internal Revenue Code of 1986, or in a partnership, shall
be treated as one manufacturer for purposes of paragraph
(2)(D)(iv).
``(ii) Partnership defined.--In clause (i), the term
`partnership' means a syndicate, group, pool, joint
venture, or other organization through or by means of which
any business, financial operation, or venture is carried on
by the manufacturer of the biological product and the
manufacturer of the biosimilar biological product.
``(2) Rules described.--The rules described in this paragraph
are the following:
``(A) Delayed selection and negotiation for 1 year.--If a
determination of high likelihood is made under paragraph (3),
the Secretary shall delay the inclusion of the biological
product as a selected drug on the list published under
subsection (a) until such list is published with respect to the
initial price applicability year that is 1 year after the
initial price applicability year for which the biological
product would have been included as a selected drug on such
list.
``(B) If not licensed and marketed during the initial
delay.--
``(i) In general.--If, during the time period between
the selected drug publication date on which the biological
product would have been included on the list as a selected
drug pursuant to subsection (a) but for subparagraph (A)
and the selected drug publication date with respect to the
initial price applicability year that is 1 year after the
initial price applicability year for which such biological
product would have been included as a selected drug on such
list, the Secretary determines that the biosimilar
biological product for which the manufacturer submitted the
request under paragraph (1)(B)(i)(II) (and for which the
Secretary previously made a high likelihood determination
under paragraph (3)) has not been licensed and marketed
under section 351(k) of the Public Health Service Act, the
Secretary shall, at the request of such manufacturer--
``(I) reevaluate whether there is a high likelihood
(as described in paragraph (3)) that such biosimilar
biological product will be licensed and marketed under
such section 351(k) before the date that is 2 years
after the selected drug publication date for which such
biological product would have been included as a
selected drug on such list published but for
subparagraph (A); and
``(II) evaluate whether, on the basis of clear and
convincing evidence, the manufacturer of such
biosimilar biological product has made a significant
amount of progress (as determined by the Secretary)
towards both such licensure and the marketing of such
biosimilar biological product (based on information
from items described in subclauses (I)(bb) and (II) of
paragraph (1)(B)(ii)) since the receipt by the
Secretary of the request made by such manufacturer
under paragraph (1)(B)(i)(I).
``(ii) Selection and negotiation.--If the Secretary
determines that there is not a high likelihood that such
biosimilar biological product will be licensed and marketed
as described in clause (i)(I) or there has not been a
significant amount of progress as described in clause
(i)(II)--
``(I) the Secretary shall include the biological
product as a selected drug on the list published under
subsection (a) with respect to the initial price
applicability year that is 1 year after the initial
price applicability year for which such biological
product would have been included as a selected drug on
such list but for subparagraph (A); and
``(II) the manufacturer of such biological product
shall pay a rebate under paragraph (4) with respect to
the year for which such manufacturer would have
provided access to a maximum fair price for such
biological product but for subparagraph (A).
``(iii) Second 1-year delay.--If the Secretary
determines that there is a high likelihood that such
biosimilar biological product will be licensed and marketed
(as described in clause (i)(I)) and a significant amount of
progress has been made by the manufacturer of such
biosimilar biological product towards such licensure and
marketing (as described in clause (i)(II)), the Secretary
shall delay the inclusion of the biological product as a
selected drug on the list published under subsection (a)
until the selected drug publication date of such list with
respect to the initial price applicability year that is 2
years after the initial price applicability year for which
such biological product would have been included as a
selected drug on such list but for this subsection.
``(C) If not licensed and marketed during the year two
delay.--If, during the time period between the selected drug
publication date of the list for which the biological product
would have been included as a selected drug but for
subparagraph (B)(iii) and the selected drug publication date
with respect to the initial price applicability year that is 2
years after the initial price applicability year for which such
biological product would have been included as a selected drug
on such list but for this subsection, the Secretary determines
that such biosimilar biological product has not been licensed
and marketed--
``(i) the Secretary shall include such biological
product as a selected drug on such list with respect to the
initial price applicability year that is 2 years after the
initial price applicability year for which such biological
product would have been included as a selected drug on such
list; and
``(ii) the manufacturer of such biological product
shall pay a rebate under paragraph (4) with respect to the
years for which such manufacturer would have provided
access to a maximum fair price for such biological product
but for this subsection.
``(D) Limitations on delays.--
``(i) Limited to 2 years.--In no case shall the
Secretary delay the inclusion of a biological product on
the list published under subsection (a) for more than 2
years.
``(ii) Exclusion of biological products that
transitioned to a long-monopoly drug during the delay.--In
the case of a biological product for which the inclusion on
the list published pursuant to subsection (a) was delayed
by 1 year under subparagraph (A) and for which there would
have been a change in status to a long-monopoly drug (as
defined in section 1194(c)(5)) if such biological product
had been a selected drug, in no case may the Secretary
provide for a second 1-year delay under subparagraph
(B)(iii).
``(iii) Exclusion of biological products if more than 1
year since licensure.--In no case shall the Secretary delay
the inclusion of a biological product on the list published
under subsection (a) if more than 1 year has elapsed since
the biosimilar biological product has been licensed under
section 351(k) of the Public Health Service Act and
marketing has not commenced for such biosimilar biological
product.
``(iv) Certain manufacturers of biosimilar biological
products excluded.--In no case shall the Secretary delay
the inclusion of a biological product as a selected drug on
the list published under subsection (a) if Secretary
determined that the manufacturer of the biosimilar
biological product described in paragraph (1)(A)--
``(I) is the same as the manufacturer of the
reference product described in such paragraph or is
treated as being the same pursuant to paragraph (1)(C);
or
``(II) has, based on information from items
described in paragraph (1)(B)(ii)(I)(bb), entered into
any agreement described in such paragraph with the
manufacturer of the reference product described in
paragraph (1)(A) that--
``(aa) requires or incentivizes the
manufacturer of the biosimilar biological product
to submit a request described in paragraph (1)(B);
or
``(bb) restricts the quantity (either directly
or indirectly) of the biosimilar biological product
that may be sold in the United States over a
specified period of time.
``(3) High likelihood.--For purposes of this subsection, there
is a high likelihood described in paragraph (1) or paragraph (2),
as applicable, if the Secretary finds that--
``(A) an application for licensure under section 351(k) of
the Public Health Service Act for the biosimilar biological
product has been accepted for review or approved by the Food
and Drug Administration; and
``(B) information from items described in sub clauses
(I)(bb) and (III) of paragraph (1)(B)(ii) submitted to the
Secretary by the manufacturer requesting a delay under such
paragraph provides clear and convincing evidence that such
biosimilar biological product will, within the time period
specified under paragraph (1)(A) or (2)(B)(i)(I), be marketed.
``(4) Rebate.--
``(A) In general.--For purposes of subparagraphs
(B)(ii)(II) and (C)(ii) of paragraph (2), in the case of a
biological product for which the inclusion on the list under
subsection (a) was delayed under this subsection and for which
the Secretary has negotiated and entered into an agreement
under section 1193 with respect to such biological product, the
manufacturer shall be required to pay a rebate to the Secretary
at such time and in such manner as determined by the Secretary.
``(B) Amount.--Subject to subparagraph (C), the amount of
the rebate under subparagraph (A) with respect to a biological
product shall be equal to the estimated amount--
``(i) in the case of a biological product that is a
covered part D drug (as defined in section 1860D-2(e)),
that is the sum of the products of--
``(I) 75 percent of the amount by which--
``(aa) the average manufacturer price, as
reported by the manufacturer of such covered part D
drug under section 1927 (or, if not reported by
such manufacturer under section 1927, as reported
by such manufacturer to the Secretary pursuant to
the agreement under section 1193(a)) for such
biological product, with respect to each of the
calendar quarters of the price applicability period
that would have applied but for this subsection;
exceeds
``(bb) in the initial price applicability year
that would have applied but for a delay under--
``(AA) paragraph (2)(A), the maximum fair
price negotiated under section 1194 for such
biological product under such agreement; or
``(BB) paragraph (2)(B)(iii), such maximum
fair price, increased as described in section
1195(b)(1)(A); and
``(II) the number of units dispensed under part D
of title XVIII for such covered part D drug during each
such calendar quarter of such price applicability
period; and
``(ii) in the case of a biological product for which
payment may be made under part B of title XVIII, that is
the sum of the products of--
``(I) 80 percent of the amount by which--
``(aa) the payment amount for such biological
product under section 1847A(b), with respect to
each of the calendar quarters of the price
applicability period that would have applied but
for this subsection; exceeds
``(bb) in the initial price applicability year
that would have applied but for a delay under--
``(AA) paragraph (2)(A), the maximum fair
price negotiated under section 1194 for such
biological product under such agreement; or
``(BB) paragraph (2)(B)(iii), such maximum
fair price, increased as described in section
1195(b)(1)(A); and
``(II) the number of units (excluding units that
are packaged into the payment amount for an item or
service and are not separately payable under such part
B) of the billing and payment code of such biological
product administered or furnished under such part B
during each such calendar quarter of such price
applicability period.
``(C) Special rule for delayed biological products that are
long-monopoly drugs.--
``(i) In general.--In the case of a biological product
with respect to which a rebate is required to be paid under
this paragraph, if such biological product qualifies as a
long-monopoly drug (as defined in section 1194(c)(5)) at
the time of its inclusion on the list published under
subsection (a), in determining the amount of the rebate for
such biological product under subparagraph (B), the amount
described in clause (ii) shall be substituted for the
maximum fair price described in clause (i)(I) or (ii)(I) of
such subparagraph (B), as applicable.
``(ii) Amount described.--The amount described in this
clause is an amount equal to 65 percent of the average non-
Federal average manufacturer price for the biological
product for 2021 (or, in the case that there is not an
average non-Federal average manufacturer price available
for such biological product for 2021, for the first full
year following the market entry for such biological
product), increased by the percentage increase in the
consumer price index for all urban consumers (all items;
United States city average) from September 2021 (or
December of such first full year following the market
entry), as applicable, to September of the year prior to
the selected drug publication date with respect to the
initial price applicability year that would have applied
but for this subsection.
``(D) Rebate deposits.--Amounts paid as rebates under this
paragraph shall be deposited into--
``(i) in the case payment is made for such biological
product under part B of title XVIII, the Federal
Supplementary Medical Insurance Trust Fund established
under section 1841; and
``(ii) in the case such biological product is a covered
part D drug (as defined in section 1860D-2(e)), the
Medicare Prescription Drug Account under section 1860D-16
in such Trust Fund.
``(5) Definitions of biosimilar biological product.--In this
subsection, the term `biosimilar biological product' has the
meaning given such term in section 1847A(c)(6).'';
(2) in section 1193(a)(4)--
(A) in the matter preceding subparagraph (A), by inserting
``, and for section 1192(f),'' after ``section 1194(f))'';
(B) in subparagraph (A), by striking ``and'' at the end;
(C) by adding at the end the following new subparagraph:
``(C) information that the Secretary requires to carry out
section 1192(f), including rebates under paragraph (4) of such
section; and'';
(3) in section 1196(a)(7), by striking ``section
1192(d)(2)(B)'' and inserting ``subsections (d)(2)(B) and (f)(1)(C)
of section 1192'';
(4) in section 1197--
(A) by redesignating subsections (b), (c), and (d) as
subsections (c), (d), and (e), respectively; and
(B) by inserting after subsection (a) the following new
subsection:
``(b) Violations Relating to Providing Rebates.--Any manufacturer
that fails to comply with the rebate requirements under section
1192(f)(4) shall be subject to a civil monetary penalty equal to 10
times the amount of the rebate the manufacturer failed to pay under
such section.''; and
(5) in section 1198(b)(2), by inserting ``the application of
section 1192(f),'' after ``section 1192(e)''.
(b) Conforming Amendments for Disclosure of Certain Information.--
Section 1927(b)(3)(D)(i) of the Social Security Act (42 U.S.C. 1396r-
8(b)(3)(D)(i)) is amended by striking ``or to carry out section 1847B''
and inserting ``or to carry out section 1847B or section 1192(f),
including rebates under paragraph (4) of such section''.
(c) Implementation for 2026 Through 2028.--The Secretary of Health
and Human Services shall implement this section, including the
amendments made by this section, for 2026, 2027, and 2028 by program
instruction or other forms of program guidance.
SEC. 11003. EXCISE TAX IMPOSED ON DRUG MANUFACTURERS DURING
NONCOMPLIANCE PERIODS.
(a) In General.--Subtitle D of the Internal Revenue Code of 1986 is
amended by adding at the end the following new chapter:
``CHAPTER 50A--DESIGNATED DRUGS
``Sec. 5000D. Designated drugs during noncompliance periods.
``SEC. 5000D. DESIGNATED DRUGS DURING NONCOMPLIANCE PERIODS.
``(a) In General.--There is hereby imposed on the sale by the
manufacturer, producer, or importer of any designated drug during a day
described in subsection (b) a tax in an amount such that the applicable
percentage is equal to the ratio of--
``(1) such tax, divided by
``(2) the sum of such tax and the price for which so sold.
``(b) Noncompliance Periods.--A day is described in this subsection
with respect to a designated drug if it is a day during one of the
following periods:
``(1) The period beginning on the March 1st (or, in the case of
initial price applicability year 2026, the October 2nd) immediately
following the date on which such drug is included on the list
published under section 1192(a) of the Social Security Act and
ending on the earlier of--
``(A) the first date on which the manufacturer of such
designated drug has in place an agreement described in section
1193(a) of such Act with respect to such drug, or
``(B) the date that the Secretary of Health and Human
Services has made a determination described in section
1192(c)(1) of such Act with respect to such designated drug.
``(2) The period beginning on the November 2nd immediately
following the March 1st described in paragraph (1) (or, in the case
of initial price applicability year 2026, the August 2nd
immediately following the October 2nd described in such paragraph)
and ending on the earlier of--
``(A) the first date on which the manufacturer of such
designated drug and the Secretary of Health and Human Services
have agreed to a maximum fair price under an agreement
described in section 1193(a) of the Social Security Act, or
``(B) the date that the Secretary of Health and Human
Services has made a determination described in section
1192(c)(1) of such Act with respect to such designated drug.
``(3) In the case of any designated drug which is a selected
drug (as defined in section 1192(c) of the Social Security Act)
that the Secretary of Health and Human Services has selected for
renegotiation under section 1194(f) of such Act, the period
beginning on the November 2nd of the year that begins 2 years prior
to the first initial price applicability year of the price
applicability period for which the maximum fair price established
pursuant to such renegotiation applies and ending on the earlier
of--
``(A) the first date on which the manufacturer of such
designated drug has agreed to a renegotiated maximum fair price
under such agreement, or
``(B) the date that the Secretary of Health and Human
Services has made a determination described in section
1192(c)(1) of such Act with respect to such designated drug.
``(4) With respect to information that is required to be
submitted to the Secretary of Health and Human Services under an
agreement described in section 1193(a) of the Social Security Act,
the period beginning on the date on which such Secretary certifies
that such information is overdue and ending on the date that such
information is so submitted.
``(c) Suspension of Tax.--
``(1) In general.--A day shall not be taken into account as a
day during a period described in subsection (b) if such day is also
a day during the period--
``(A) beginning on the first date on which--
``(i) the notice of terminations of all applicable
agreements of the manufacturer have been received by the
Secretary of Health and Human Services, and
``(ii) none of the drugs of the manufacturer of the
designated drug are covered by an agreement under section
1860D-14A or 1860D-14C of the Social Security Act, and
``(B) ending on the last day of February following the
earlier of--
``(i) the first day after the date described in
subparagraph (A) on which the manufacturer enters into any
subsequent applicable agreement, or
``(ii) the first date any drug of the manufacturer of
the designated drug is covered by an agreement under
section 1860D-14A or 1860D-14C of the Social Security Act.
``(2) Applicable agreement.--For purposes of this subsection,
the term `applicable agreement' means the following:
``(A) An agreement under--
``(i) the Medicare coverage gap discount program under
section 1860D-14A of the Social Security Act, or
``(ii) the manufacturer discount program under section
1860D-14C of such Act.
``(B) A rebate agreement described in section 1927(b) of
such Act.
``(d) Applicable Percentage.--For purposes of this section, the
term `applicable percentage' means--
``(1) in the case of sales of a designated drug during the
first 90 days described in subsection (b) with respect to such
drug, 65 percent,
``(2) in the case of sales of such drug during the 91st day
through the 180th day described in subsection (b) with respect to
such drug, 75 percent,
``(3) in the case of sales of such drug during the 181st day
through the 270th day described in subsection (b) with respect to
such drug, 85 percent, and
``(4) in the case of sales of such drug during any subsequent
day, 95 percent.
``(e) Definitions.--For purposes of this section--
``(1) Designated drug.--The term `designated drug' means any
negotiation-eligible drug (as defined in section 1192(d) of the
Social Security Act) included on the list published under section
1192(a) of such Act which is manufactured or produced in the United
States or entered into the United States for consumption, use, or
warehousing.
``(2) United states.--The term `United States' has the meaning
given such term by section 4612(a)(4).
``(3) Other terms.--The terms `initial price applicability
year', `price applicability period', and `maximum fair price' have
the meaning given such terms in section 1191 of the Social Security
Act.
``(f) Special Rules.--
``(1) Coordination with rules for possessions of the united
states.--Rules similar to the rules of paragraphs (2) and (4) of
section 4132(c) shall apply for purposes of this section.
``(2) Anti-abuse rule.--In the case of a sale which was timed
for the purpose of avoiding the tax imposed by this section, the
Secretary may treat such sale as occurring during a day described
in subsection (b).
``(g) Exports.--Rules similar to the rules of section 4662(e)
(other than section 4662(e)(2)(A)(ii)(II)) shall apply for purposes of
this chapter.
``(h) Regulations.--The Secretary shall prescribe such regulations
and other guidance as may be necessary to carry out this section.''.
(b) No Deduction for Excise Tax Payments.--Section 275(a)(6) of the
Internal Revenue Code of 1986 is amended by inserting ``50A,'' after
``46,''.
(c) Clerical Amendment.--The table of chapters for subtitle D of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new item:
``Chapter 50A--Designated Drugs''.
(d) Effective Date.--The amendments made by this section shall
apply to sales after the date of the enactment of this Act.
SEC. 11004. FUNDING.
In addition to amounts otherwise available, there is appropriated
to the Centers for Medicare & Medicaid Services, out of any money in
the Treasury not otherwise appropriated, $3,000,000,000 for fiscal year
2022, to remain available until expended, to carry out the provisions
of, including the amendments made by, this part.
PART 2--PRESCRIPTION DRUG INFLATION REBATES
SEC. 11101. MEDICARE PART B REBATE BY MANUFACTURERS.
(a) In General.--Section 1847A of the Social Security Act (42
U.S.C. 1395w-3a) is amended by redesignating subsection (i) as
subsection (j) and by inserting after subsection (h) the following
subsection:
``(i) Rebate by Manufacturers for Single Source Drugs and
Biologicals With Prices Increasing Faster Than Inflation.--
``(1) Requirements.--
``(A) Secretarial provision of information.--Not later than
6 months after the end of each calendar quarter beginning on or
after January 1, 2023, the Secretary shall, for each part B
rebatable drug, report to each manufacturer of such part B
rebatable drug the following for such calendar quarter:
``(i) Information on the total number of units of the
billing and payment code described in subparagraph (A)(i)
of paragraph (3) with respect to such drug and calendar
quarter.
``(ii) Information on the amount (if any) of the excess
average sales price increase described in subparagraph
(A)(ii) of such paragraph for such drug and calendar
quarter.
``(iii) The rebate amount specified under such
paragraph for such part B rebatable drug and calendar
quarter.
``(B) Manufacturer requirement.--For each calendar quarter
beginning on or after January 1, 2023, the manufacturer of a
part B rebatable drug shall, for such drug, not later than 30
days after the date of receipt from the Secretary of the
information described in subparagraph (A) for such calendar
quarter, provide to the Secretary a rebate that is equal to the
amount specified in paragraph (3) for such drug for such
calendar quarter.
``(C) Transition rule for reporting.--The Secretary may,
for each part B rebatable drug, delay the timeframe for
reporting the information described in subparagraph (A) for
calendar quarters beginning in 2023 and 2024 until not later
than September 30, 2025.
``(2) Part b rebatable drug defined.--
``(A) In general.--In this subsection, the term `part B
rebatable drug' means a single source drug or biological (as
defined in subparagraph (D) of subsection (c)(6)), including a
biosimilar biological product (as defined in subparagraph (H)
of such subsection) but excluding a qualifying biosimilar
biological product (as defined in subsection (b)(8)(B)(iii)),
for which payment is made under this part, except such term
shall not include such a drug or biological--
``(i) if, as determined by the Secretary, the average
total allowed charges for such drug or biological under
this part for a year per individual that uses such a drug
or biological are less than, subject to subparagraph (B),
$100; or
``(ii) that is a vaccine described in subparagraph (A)
or (B) of section 1861(s)(10).
``(B) Increase.--The dollar amount applied under
subparagraph (A)(i)--
``(i) for 2024, shall be the dollar amount specified
under such subparagraph for 2023, increased by the
percentage increase in the consumer price index for all
urban consumers (United States city average) for the 12-
month period ending with June of the previous year; and
``(ii) for a subsequent year, shall be the dollar
amount specified in this clause (or clause (i)) for the
previous year (without application of subparagraph (C)),
increased by the percentage increase in the consumer price
index for all urban consumers (United States city average)
for the 12-month period ending with June of the previous
year.
``(C) Rounding.--Any dollar amount determined under
subparagraph (B) that is not a multiple of $10 shall be rounded
to the nearest multiple of $10.
``(3) Rebate amount.--
``(A) In general.--For purposes of paragraph (1), the
amount specified in this paragraph for a part B rebatable drug
assigned to a billing and payment code for a calendar quarter
is, subject to subparagraphs (B) and (G) and paragraph (4), the
estimated amount equal to the product of--
``(i) the total number of units determined under
subparagraph (B) for the billing and payment code of such
drug; and
``(ii) the amount (if any) by which--
``(I) the amount equal to--
``(aa) in the case of a part B rebatable drug
described in paragraph (1)(B) of subsection (b),
106 percent of the amount determined under
paragraph (4) of such section for such drug during
the calendar quarter; or
``(bb) in the case of a part B rebatable drug
described in paragraph (1)(C) of such subsection,
the payment amount under such paragraph for such
drug during the calendar quarter; exceeds
``(II) the inflation-adjusted payment amount
determined under subparagraph (C) for such part B
rebatable drug during the calendar quarter.
``(B) Total number of units.--For purposes of subparagraph
(A)(i), the total number of units for the billing and payment
code with respect to a part B rebatable drug furnished during a
calendar quarter described in subparagraph (A) is equal to--
``(i) the number of units for the billing and payment
code of such drug furnished during such calendar quarter,
minus
``(ii) the number of units for such billing and payment
code of such drug furnished during such calendar quarter--
``(I) with respect to which the manufacturer
provides a discount under the program under section
340B of the Public Health Service Act or a rebate under
section 1927; or
``(II) that are packaged into the payment amount
for an item or service and are not separately payable.
``(C) Determination of inflation-adjusted payment amount.--
The inflation-adjusted payment amount determined under this
subparagraph for a part B rebatable drug for a calendar quarter
is--
``(i) the payment amount for the billing and payment
code for such drug in the payment amount benchmark quarter
(as defined in subparagraph (D)); increased by
``(ii) the percentage by which the rebate period CPI-U
(as defined in subparagraph (F)) for the calendar quarter
exceeds the benchmark period CPI-U (as defined in
subparagraph (E)).
``(D) Payment amount benchmark quarter.--The term `payment
amount benchmark quarter' means the calendar quarter beginning
July 1, 2021.
``(E) Benchmark period cpi-u.--The term `benchmark period
CPI-U' means the consumer price index for all urban consumers
(United States city average) for January 2021.
``(F) Rebate period cpi-u.--The term `rebate period CPI-U'
means, with respect to a calendar quarter described in
subparagraph (C), the greater of the benchmark period CPI-U and
the consumer price index for all urban consumers (United States
city average) for the first month of the calendar quarter that
is two calendar quarters prior to such described calendar
quarter.
``(G) Reduction or waiver for shortages and severe supply
chain disruptions.--The Secretary shall reduce or waive the
amount under subparagraph (A) with respect to a part B
rebatable drug and a calendar quarter--
``(i) in the case of a part B rebatable drug that is
described as currently in shortage on the shortage list in
effect under section 506E of the Federal Food, Drug, and
Cosmetic Act at any point during the calendar quarter; or
``(ii) in the case of a biosimilar biological product,
when the Secretary determines there is a severe supply
chain disruption during the calendar quarter, such as that
caused by a natural disaster or other unique or unexpected
event.
``(4) Special treatment of certain drugs and exemption.--
``(A) Subsequently approved drugs.--In the case of a part B
rebatable drug first approved or licensed by the Food and Drug
Administration after December 1, 2020, clause (i) of paragraph
(3)(C) shall be applied as if the term `payment amount
benchmark quarter' were defined under paragraph (3)(D) as the
third full calendar quarter after the day on which the drug was
first marketed and clause (ii) of paragraph (3)(C) shall be
applied as if the term `benchmark period CPI-U' were defined
under paragraph (3)(E) as if the reference to `January 2021'
under such paragraph were a reference to `the first month of
the first full calendar quarter after the day on which the drug
was first marketed'.
``(B) Timeline for provision of rebates for subsequently
approved drugs.--In the case of a part B rebatable drug first
approved or licensed by the Food and Drug Administration after
December 1, 2020, paragraph (1)(B) shall be applied as if the
reference to `January 1, 2023' under such paragraph were a
reference to `the later of the 6th full calendar quarter after
the day on which the drug was first marketed or January 1,
2023'.
``(C) Selected drugs.--In the case of a part B rebatable
drug that is a selected drug (as defined in section 1192(c))
with respect to a price applicability period (as defined in
section 1191(b)(2)), in the case such drug is no longer
considered to be a selected drug under section 1192(c), for
each applicable period (as defined under subsection (g)(7))
beginning after the price applicability period with respect to
such drug, clause (i) of paragraph (3)(C) shall be applied as
if the term `payment amount benchmark quarter' were defined
under paragraph (3)(D) as the calendar quarter beginning
January 1 of the last year during such price applicability
period with respect to such selected drug and clause (ii) of
paragraph (3)(C) shall be applied as if the term `benchmark
period CPI-U' were defined under paragraph (3)(E) as if the
reference to `January 2021' under such paragraph were a
reference to `the July of the year preceding such last year'.
``(5) Application to beneficiary coinsurance.--In the case of a
part B rebatable drug furnished on or after April 1, 2023, if the
payment amount described in paragraph (3)(A)(ii)(I) (or, in the
case of a part B rebatable drug that is a selected drug (as defined
in section 1192(c)), the payment amount described in subsection
(b)(1)(B) for such drug) for a calendar quarter exceeds the
inflation adjusted payment for such quarter--
``(A) in computing the amount of any coinsurance applicable
under this part to an individual to whom such drug is
furnished, the computation of such coinsurance shall be equal
to 20 percent of the inflation-adjusted payment amount
determined under paragraph (3)(C) for such part B rebatable
drug; and
``(B) the amount of such coinsurance for such calendar
quarter, as computed under subparagraph (A), shall be applied
as a percent, as determined by the Secretary, to the payment
amount that would otherwise apply under subparagraphs (B) or
(C) of subsection (b)(1).
``(6) Rebate deposits.--Amounts paid as rebates under paragraph
(1)(B) shall be deposited into the Federal Supplementary Medical
Insurance Trust Fund established under section 1841.
``(7) Civil money penalty.--If a manufacturer of a part B
rebatable drug has failed to comply with the requirements under
paragraph (1)(B) for such drug for a calendar quarter, the
manufacturer shall be subject to, in accordance with a process
established by the Secretary pursuant to regulations, a civil money
penalty in an amount equal to at least 125 percent of the amount
specified in paragraph (3) for such drug for such calendar quarter.
The provisions of section 1128A (other than subsections (a) (with
respect to amounts of penalties or additional assessments) and (b))
shall apply to a civil money penalty under this paragraph in the
same manner as such provisions apply to a penalty or proceeding
under section 1128A(a).
``(8) Limitation on administrative or judicial review.--There
shall be no administrative or judicial review of any of the
following:
``(A) The determination of units under this subsection.
``(B) The determination of whether a drug is a part B
rebatable drug under this subsection.
``(C) The calculation of the rebate amount under this
subsection.
``(D) The computation of coinsurance under paragraph (5) of
this subsection.
``(E) The computation of amounts paid under section
1833(a)(1)(EE).''.
(b) Amounts Payable; Cost-Sharing.--Section 1833 of the Social
Security Act (42 U.S.C. 1395l) is amended--
(1) in subsection (a)(1)--
(A) in subparagraph (G), by inserting ``, subject to
subsection (i)(9),'' after ``the amounts paid'';
(B) in subparagraph (S), by striking ``with respect to''
and inserting ``subject to subparagraph (EE), with respect
to'';
(C) by striking ``and (DD)'' and inserting ``(DD)''; and
(D) by inserting before the semicolon at the end the
following: ``, and (EE) with respect to a part B rebatable drug
(as defined in paragraph (2) of section 1847A(i)) furnished on
or after April 1, 2023, for which the payment amount for a
calendar quarter under paragraph (3)(A)(ii)(I) of such section
(or, in the case of a part B rebatable drug that is a selected
drug (as defined in section 1192(c) for which, the payment
amount described in section 1847A(b)(1)(B)) for such drug for
such quarter exceeds the inflation-adjusted payment under
paragraph (3)(A)(ii)(II) of such section for such quarter, the
amounts paid shall be equal to the percent of the payment
amount under paragraph (3)(A)(ii)(I) of such section or section
1847A(b)(1)(B), as applicable, that equals the difference
between (i) 100 percent, and (ii) the percent applied under
section 1847A(i)(5)(B)'';
(2) in subsection (i), by adding at the end the following new
paragraph:
``(9) In the case of a part B rebatable drug (as defined in
paragraph (2) of section 1847A(i)) for which payment under this
subsection is not packaged into a payment for a service furnished on or
after April 1, 2023, under the revised payment system under this
subsection, in lieu of calculation of coinsurance and the amount of
payment otherwise applicable under this subsection, the provisions of
section 1847A(i)(5) and paragraph (1)(EE) of subsection (a), shall, as
determined appropriate by the Secretary, apply under this subsection in
the same manner as such provisions of section 1847A(i)(5) and
subsection (a) apply under such section and subsection.''; and
(3) in subsection (t)(8), by adding at the end the following
new subparagraph:
``(F) Part b rebatable drugs.--In the case of a part B
rebatable drug (as defined in paragraph (2) of section
1847A(i), except if such drug does not have a copayment amount
as a result of application of subparagraph (E)) for which
payment under this part is not packaged into a payment for a
covered OPD service (or group of services) furnished on or
after April 1, 2023, and the payment for such drug under this
subsection is the same as the amount for a calendar quarter
under paragraph (3)(A)(ii)(I) of section 1847A(i), under the
system under this subsection, in lieu of calculation of the
copayment amount and the amount of payment otherwise applicable
under this subsection (other than the application of the
limitation described in subparagraph (C)), the provisions of
section 1847A(i)(5) and paragraph (1)(EE) of subsection (a),
shall, as determined appropriate by the Secretary, apply under
this subsection in the same manner as such provisions of
section 1847A(i)(5) and subsection (a) apply under such section
and subsection.''.
(c) Conforming Amendments.--
(1) To part b asp calculation.--Section 1847A(c)(3) of the
Social Security Act (42 U.S.C. 1395w-3a(c)(3)) is amended by
inserting ``subsection (i) or'' before ``section 1927''.
(2) Excluding part b drug inflation rebate from best price.--
Section 1927(c)(1)(C)(ii)(I) of the Social Security Act (42 U.S.C.
1396r-8(c)(1)(C)(ii)(I)) is amended by inserting ``or section
1847A(i)'' after ``this section''.
(3) Coordination with medicaid rebate information disclosure.--
Section 1927(b)(3)(D)(i) of the Social Security Act (42 U.S.C.
1396r-8(b)(3)(D)(i)) is amended by inserting ``and the rebate''
after ``the payment amount''.
(4) Excluding part b drug inflation rebates from average
manufacturer price.--Section 1927(k)(1)(B)(i) of the Social
Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by section
11001(b)(3), is amended--
(A) in subclause (V), by striking ``and'' at the end;
(B) in subclause (VI), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subclause:
``(VII) rebates paid by manufacturers under section
1847A(i); and''.
(d) Funding.--In addition to amounts otherwise available, there are
appropriated to the Centers for Medicare & Medicaid Services, out of
any money in the Treasury not otherwise appropriated, $80,000,000 for
fiscal year 2022, including $12,500,000 to carry out the provisions of,
including the amendments made by, this section in fiscal year 2022, and
$7,500,000 to carry out the provisions of, including the amendments
made by, this section in each of fiscal years 2023 through 2031, to
remain available until expended.
SEC. 11102. MEDICARE PART D REBATE BY MANUFACTURERS.
(a) In General.--Part D of title XVIII of the Social Security Act
is amended by inserting after section 1860D-14A (42 U.S.C. 1395w-114a)
the following new section:
``SEC. 1860D-14B. MANUFACTURER REBATE FOR CERTAIN DRUGS WITH PRICES
INCREASING FASTER THAN INFLATION.
``(a) Requirements.--
``(1) Secretarial provision of information.--Not later than 9
months after the end of each applicable period (as defined in
subsection (g)(7)), subject to paragraph (3), the Secretary shall,
for each part D rebatable drug, report to each manufacturer of such
part D rebatable drug the following for such period:
``(A) The amount (if any) of the excess annual manufacturer
price increase described in subsection (b)(1)(A)(ii) for each
dosage form and strength with respect to such drug and period.
``(B) The rebate amount specified under subsection (b) for
each dosage form and strength with respect to such drug and
period.
``(2) Manufacturer requirements.--For each applicable period,
the manufacturer of a part D rebatable drug, for each dosage form
and strength with respect to such drug, not later than 30 days
after the date of receipt from the Secretary of the information
described in paragraph (1) for such period, shall provide to the
Secretary a rebate that is equal to the amount specified in
subsection (b) for such dosage form and strength with respect to
such drug for such period.
``(3) Transition rule for reporting.--The Secretary may, for
each rebatable covered part D drug, delay the timeframe for
reporting the information and rebate amount described in
subparagraphs (A) and (B) of such paragraph for the applicable
periods beginning October 1, 2022, and October 1, 2023, until not
later than December 31, 2025.
``(b) Rebate Amount.--
``(1) In general.--
``(A) Calculation.--For purposes of this section, the
amount specified in this subsection for a dosage form and
strength with respect to a part D rebatable drug and applicable
period is, subject to subparagraph (C), paragraph (5)(B), and
paragraph (6), the estimated amount equal to the product of--
``(i) subject to subparagraph (B) of this paragraph,
the total number of units of such dosage form and strength
for each rebatable covered part D drug dispensed under this
part during the applicable period; and
``(ii) the amount (if any) by which--
``(I) the annual manufacturer price (as determined
in paragraph (2)) paid for such dosage form and
strength with respect to such part D rebatable drug for
the period; exceeds
``(II) the inflation-adjusted payment amount
determined under paragraph (3) for such dosage form and
strength with respect to such part D rebatable drug for
the period.
``(B) Excluded units.--For purposes of subparagraph (A)(i),
beginning with plan year 2026, the Secretary shall exclude from
the total number of units for a dosage form and strength with
respect to a part D rebatable drug, with respect to an
applicable period, units of each dosage form and strength of
such part D rebatable drug for which the manufacturer provides
a discount under the program under section 340B of the Public
Health Service Act.
``(C) Reduction or waiver for shortages and severe supply
chain disruptions.--The Secretary shall reduce or waive the
amount under subparagraph (A) with respect to a part D
rebatable drug and an applicable period--
``(i) in the case of a part D rebatable drug that is
described as currently in shortage on the shortage list in
effect under section 506E of the Federal Food, Drug, and
Cosmetic Act at any point during the applicable period;
``(ii) in the case of a generic part D rebatable drug
(described in subsection (g)(1)(C)(ii)) or a biosimilar
(defined as a biological product licensed under section
351(k) of the Public Health Service Act), when the
Secretary determines there is a severe supply chain
disruption during the applicable period, such as that
caused by a natural disaster or other unique or unexpected
event; and
``(iii) in the case of a generic Part D rebatable drug
(as so described), if the Secretary determines that without
such reduction or waiver, the drug is likely to be
described as in shortage on such shortage list during a
subsequent applicable period.
``(2) Determination of annual manufacturer price.--The annual
manufacturer price determined under this paragraph for a dosage
form and strength, with respect to a part D rebatable drug and an
applicable period, is the sum of the products of--
``(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to each of the
calendar quarters of such period; and
``(B) the ratio of--
``(i) the total number of units of such dosage form and
strength reported under section 1927 with respect to each
such calendar quarter of such period; to
``(ii) the total number of units of such dosage form
and strength reported under section 1927 with respect to
such period, as determined by the Secretary.
``(3) Determination of inflation-adjusted payment amount.--The
inflation-adjusted payment amount determined under this paragraph
for a dosage form and strength with respect to a part D rebatable
drug for an applicable period, subject to paragraph (5), is--
``(A) the benchmark period manufacturer price determined
under paragraph (4) for such dosage form and strength with
respect to such drug and period; increased by
``(B) the percentage by which the applicable period CPI-U
(as defined in subsection (g)(5)) for the period exceeds the
benchmark period CPI-U (as defined in subsection (g)(4)).
``(4) Determination of benchmark period manufacturer price.--
The benchmark period manufacturer price determined under this
paragraph for a dosage form and strength, with respect to a part D
rebatable drug and an applicable period, is the sum of the products
of--
``(A) the average manufacturer price (as defined in
subsection (g)(6)) of such dosage form and strength, as
calculated for a unit of such drug, with respect to each of the
calendar quarters of the payment amount benchmark period (as
defined in subsection (g)(3)); and
``(B) the ratio of--
``(i) the total number of units reported under section
1927 of such dosage form and strength with respect to each
such calendar quarter of such payment amount benchmark
period; to
``(ii) the total number of units reported under section
1927 of such dosage form and strength with respect to such
payment amount benchmark period.
``(5) Special treatment of certain drugs and exemption.--
``(A) Subsequently approved drugs.--In the case of a part D
rebatable drug first approved or licensed by the Food and Drug
Administration after October 1, 2021, subparagraphs (A) and (B)
of paragraph (4) shall be applied as if the term `payment
amount benchmark period' were defined under subsection (g)(3)
as the first calendar year beginning after the day on which the
drug was first marketed and subparagraph (B) of paragraph (3)
shall be applied as if the term `benchmark period CPI-U' were
defined under subsection (g)(4) as if the reference to `January
2021' under such subsection were a reference to `January of the
first year beginning after the date on which the drug was first
marketed'.
``(B) Treatment of new formulations.--
``(i) In general.--In the case of a part D rebatable
drug that is a line extension of a part D rebatable drug
that is an oral solid dosage form, the Secretary shall
establish a formula for determining the rebate amount under
paragraph (1) and the inflation adjusted payment amount
under paragraph (3) with respect to such part D rebatable
drug and an applicable period, consistent with the formula
applied under subsection (c)(2)(C) of section 1927 for
determining a rebate obligation for a rebate period under
such section.
``(ii) Line extension defined.--In this subparagraph,
the term `line extension' means, with respect to a part D
rebatable drug, a new formulation of the drug, such as an
extended release formulation, but does not include an
abuse-deterrent formulation of the drug (as determined by
the Secretary), regardless of whether such abuse-deterrent
formulation is an extended release formulation.
``(C) Selected drugs.--In the case of a part D rebatable
drug that is a selected drug (as defined in section 1192(c))
with respect to a price applicability period (as defined in
section 1191(b)(2)), in the case such drug is no longer
considered to be a selected drug under section 1192(c), for
each applicable period (as defined under subsection (g)(7))
beginning after the price applicability period with respect to
such drug, subparagraphs (A) and (B) of paragraph (4) shall be
applied as if the term `payment amount benchmark period' were
defined under subsection (g)(3) as the last year beginning
during such price applicability period with respect to such
selected drug and subparagraph (B) of paragraph (3) shall be
applied as if the term `benchmark period CPI-U' were defined
under subsection (g)(4) as if the reference to `January 2021'
under such subsection were a reference to `January of the last
year beginning during such price applicability period with
respect to such drug'.
``(6) Reconciliation in case of revised information.--The
Secretary shall provide for a method and process under which, in
the case where a PDP sponsor of a prescription drug plan or an MA
organization offering an MA-PD plan submits revisions to the number
of units of a rebatable covered part D drug dispensed, the
Secretary determines, pursuant to such revisions, adjustments, if
any, to the calculation of the amount specified in this subsection
for a dosage form and strength with respect to such part D
rebatable drug and an applicable period and reconciles any
overpayments or underpayments in amounts paid as rebates under this
subsection. Any identified underpayment shall be rectified by the
manufacturer not later than 30 days after the date of receipt from
the Secretary of information on such underpayment.
``(c) Rebate Deposits.--Amounts paid as rebates under subsection
(b) shall be deposited into the Medicare Prescription Drug Account in
the Federal Supplementary Medical Insurance Trust Fund established
under section 1841.
``(d) Information.--For purposes of carrying out this section, the
Secretary shall use information submitted by--
``(1) manufacturers under section 1927(b)(3);
``(2) States under section 1927(b)(2)(A); and
``(3) PDP sponsors of prescription drug plans and MA
organization offering MA-PD plans under this part.
``(e) Civil Money Penalty.--If a manufacturer of a part D rebatable
drug has failed to comply with the requirement under subsection (a)(2)
with respect to such drug for an applicable period, the manufacturer
shall be subject to a civil money penalty in an amount equal to 125
percent of the amount specified in subsection (b) for such drug for
such period. The provisions of section 1128A (other than subsections
(a) (with respect to amounts of penalties or additional assessments)
and (b)) shall apply to a civil money penalty under this subsection in
the same manner as such provisions apply to a penalty or proceeding
under section 1128A(a).
``(f) Limitation on Administrative or Judicial Review.--There shall
be no administrative or judicial review of any of the following:
``(1) The determination of units under this section.
``(2) The determination of whether a drug is a part D rebatable
drug under this section.
``(3) The calculation of the rebate amount under this section.
``(g) Definitions.--In this section:
``(1) Part d rebatable drug.--
``(A) In general.--Except as provided in subparagraph (B),
the term `part D rebatable drug' means, with respect to an
applicable period, a drug or biological described in
subparagraph (C) that is a covered part D drug (as such term is
defined under section 1860D-2(e)).
``(B) Exclusion.--
``(i) In general.--Such term shall, with respect to an
applicable period, not include a drug or biological if the
average annual total cost under this part for such period
per individual who uses such a drug or biological, as
determined by the Secretary, is less than, subject to
clause (ii), $100, as determined by the Secretary using the
most recent data available or, if data is not available, as
estimated by the Secretary.
``(ii) Increase.--The dollar amount applied under
clause (i)--
``(I) for the applicable period beginning October
1, 2023, shall be the dollar amount specified under
such clause for the applicable period beginning October
1, 2022, increased by the percentage increase in the
consumer price index for all urban consumers (United
States city average) for the 12-month period beginning
with October of 2023; and
``(II) for a subsequent applicable period, shall be
the dollar amount specified in this clause for the
previous applicable period, increased by the percentage
increase in the consumer price index for all urban
consumers (United States city average) for the 12-month
period beginning with October of the previous period.
Any dollar amount specified under this clause that is not a
multiple of $10 shall be rounded to the nearest multiple of
$10.
``(C) Drug or biological described.--A drug or biological
described in this subparagraph is a drug or biological that, as
of the first day of the applicable period involved, is--
``(i) a drug approved under a new drug application
under section 505(c) of the Federal Food, Drug, and
Cosmetic Act;
``(ii) a drug approved under an abbreviated new drug
application under section 505(j) of the Federal Food, Drug,
and Cosmetic Act, in the case where--
``(I) the reference listed drug approved under
section 505(c) of the Federal Food, Drug, and Cosmetic
Act, including any `authorized generic drug' (as that
term is defined in section 505(t)(3) of the Federal
Food, Drug, and Cosmetic Act), is not being marketed,
as identified in the Food and Drug Administration's
National Drug Code Directory;
``(II) there is no other drug approved under
section 505(j) of the Federal Food, Drug, and Cosmetic
Act that is rated as therapeutically equivalent (under
the Food and Drug Administration's most recent
publication of `Approved Drug Products with Therapeutic
Equivalence Evaluations') and that is being marketed,
as identified in the Food and Drug Administration's
National Drug Code Directory;
``(III) the manufacturer is not a `first applicant'
during the `180-day exclusivity period', as those terms
are defined in section 505(j)(5)(B)(iv) of the Federal
Food, Drug, and Cosmetic Act; and
``(IV) the manufacturer is not a `first approved
applicant' for a competitive generic therapy, as that
term is defined in section 505(j)(5)(B)(v) of the
Federal Food, Drug, and Cosmetic Act; or
``(iii) a biological licensed under section 351 of the
Public Health Service Act.
``(2) Unit.--The term `unit' means, with respect to a part D
rebatable drug, the lowest dispensable amount (such as a capsule or
tablet, milligram of molecules, or grams) of the part D rebatable
drug, as reported under section 1927.
``(3) Payment amount benchmark period.--The term `payment
amount benchmark period' means the period beginning January 1,
2021, and ending in the month immediately prior to October 1, 2021.
``(4) Benchmark period cpi-u.--The term `benchmark period CPI-
U' means the consumer price index for all urban consumers (United
States city average) for January 2021.
``(5) Applicable period cpi-u.--The term `applicable period
CPI-U' means, with respect to an applicable period, the consumer
price index for all urban consumers (United States city average)
for the first month of such applicable period.
``(6) Average manufacturer price.--The term `average
manufacturer price' has the meaning, with respect to a part D
rebatable drug of a manufacturer, given such term in section
1927(k)(1), with respect to a covered outpatient drug of a
manufacturer for a rebate period under section 1927.
``(7) Applicable period.--The term `applicable period' means a
12-month period beginning with October 1 of a year (beginning with
October 1, 2022).
``(h) Implementation for 2022, 2023, and 2024.--The Secretary shall
implement this section for 2022, 2023, and 2024 by program instruction
or other forms of program guidance.''.
(b) Conforming Amendments.--
(1) To part b asp calculation.--Section 1847A(c)(3) of the
Social Security Act (42 U.S.C. 1395w-3a(c)(3)), as amended by
section 11101(c)(1), is amended by striking ``subsection (i) or
section 1927'' and inserting ``subsection (i), section 1927, or
section 1860D-14B''.
(2) Excluding part d drug inflation rebate from best price.--
Section 1927(c)(1)(C)(ii)(I) of the Social Security Act (42 U.S.C.
1396r-8(c)(1)(C)(ii)(I)), as amended by section 11101(c)(2), is
amended by striking ``or section 1847A(i)'' and inserting ``,
section 1847A(i), or section 1860D-14B''.
(3) Coordination with medicaid rebate information disclosure.--
Section 1927(b)(3)(D)(i) of the Social Security Act (42 U.S.C.
1396r-8(b)(3)(D)(i)), as amended by sections 11002(b) and
11101(c)(3), is amended by striking ``or section 1192(f), including
rebates under paragraph (4) of such section'' and inserting ``,
section 1192(f), including rebates under paragraph (4) of such
section, or section 1860D-14B''.
(4) Excluding part d drug inflation rebates from average
manufacturer price.--Section 1927(k)(1)(B)(i) of the Social
Security Act (42 U.S.C. 1396r-8(k)(1)(B)(i)), as amended by section
11001(b)(3) and section 11101(c)(4), is amended by adding at the
end the following new subclause:
(A) in subclause (VI), by striking ``and'' at the end;
(B) in subclause (VII), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subclause:
``(VIII) rebates paid by manufacturers under
section 1860D-14B.''.
(c) Funding.--In addition to amounts otherwise available, there are
appropriated to the Centers for Medicare & Medicaid Services, out of
any money in the Treasury not otherwise appropriated, $80,000,000 for
fiscal year 2022, including $12,500,000 to carry out the provisions of,
including the amendments made by, this section in fiscal year 2022, and
$7,500,000 to carry out the provisions of, including the amendments
made by, this section in each of fiscal years 2023 through 2031, to
remain available until expended.
PART 3--PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE
BENEFICIARIES
SEC. 11201. MEDICARE PART D BENEFIT REDESIGN.
(a) Benefit Structure Redesign.--Section 1860D-2(b) of the Social
Security Act (42 U.S.C. 1395w-102(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), in the matter preceding clause
(i), by inserting ``for a year preceding 2025 and for costs
above the annual deductible specified in paragraph (1) and up
to the annual out-of-pocket threshold specified in paragraph
(4)(B) for 2025 and each subsequent year'' after ``paragraph
(3)'';
(B) in subparagraph (C)--
(i) in clause (i), in the matter preceding subclause
(I), by inserting ``for a year preceding 2025,'' after
``paragraph (4),''; and
(ii) in clause (ii)(III), by striking ``and each
subsequent year'' and inserting ``through 2024''; and
(C) in subparagraph (D)--
(i) in clause (i)--
(I) in the matter preceding subclause (I), by
inserting ``for a year preceding 2025,'' after
``paragraph (4),''; and
(II) in subclause (I)(bb), by striking ``a year
after 2018'' and inserting ``each of years 2019 through
2024''; and
(ii) in clause (ii)(V), by striking ``2019 and each
subsequent year'' and inserting ``each of years 2019
through 2024'';
(2) in paragraph (3)(A)--
(A) in the matter preceding clause (i), by inserting ``for
a year preceding 2025,'' after ``and (4),''; and
(B) in clause (ii), by striking ``for a subsequent year''
and inserting ``for each of years 2007 through 2024''; and
(3) in paragraph (4)--
(A) in subparagraph (A)--
(i) in clause (i)--
(I) by redesignating subclauses (I) and (II) as
items (aa) and (bb), respectively, and moving the
margin of each such redesignated item 2 ems to the
right;
(II) in the matter preceding item (aa), as
redesignated by subclause (I), by striking ``is equal
to the greater of--'' and inserting ``is equal to--
``(I) for a year preceding 2024, the greater of--
'';
(III) by striking the period at the end of item
(bb), as redesignated by subclause (I), and inserting
``; and''; and
(IV) by adding at the end the following:
``(II) for 2024 and each succeeding year, $0.'';
and
(ii) in clause (ii)--
(I) by striking ``clause (i)(I)'' and inserting
``clause (i)(I)(aa)''; and
(II) by adding at the end the following new
sentence: ``The Secretary shall continue to calculate
the dollar amounts specified in clause (i)(I)(aa),
including with the adjustment under this clause, after
2023 for purposes of section 1860D-14(a)(1)(D)(iii).'';
(B) in subparagraph (B)--
(i) in clause (i)--
(I) in subclause (V), by striking ``or'' at the
end;
(II) in subclause (VI)--
(aa) by striking ``for a subsequent year'' and
inserting ``for each of years 2021 through 2024'';
and
(bb) by striking the period at the end and
inserting a semicolon; and
(III) by adding at the end the following new
subclauses:
``(VII) for 2025, is equal to $2,000; or
``(VIII) for a subsequent year, is equal to the
amount specified in this subparagraph for the previous
year, increased by the annual percentage increase
described in paragraph (6) for the year involved.'';
and
(ii) in clause (ii), by striking ``clause (i)(II)'' and
inserting ``clause (i)'';
(C) in subparagraph (C)--
(i) in clause (i), by striking ``and for amounts'' and
inserting ``and, for a year preceding 2025, for amounts'';
and
(ii) in clause (iii)--
(I) by redesignating subclauses (I) through (IV) as
items (aa) through (dd) and indenting appropriately;
(II) by striking ``if such costs are borne or
paid'' and inserting ``if such costs--
``(I) are borne or paid--''; and
(III) in item (dd), by striking the period at the
end and inserting ``; or''; and
(IV) by adding at the end the following new
subclause:
``(II) for 2025 and subsequent years, are
reimbursed through insurance, a group health plan, or
certain other third party payment arrangements, but not
including the coverage provided by a prescription drug
plan or an MA-PD plan that is basic prescription drug
coverage (as defined in subsection (a)(3)) or any
payments by a manufacturer under the manufacturer
discount program under section 1860D-14C.''; and
(D) in subparagraph (E), by striking ``In applying'' and
inserting ``For each of years 2011 through 2024, in applying''.
(b) Reinsurance Payment Amount.--Section 1860D-15(b) of the Social
Security Act (42 U.S.C. 1395w-115(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``equal to 80 percent'' and inserting
``equal to--
``(A) for a year preceding 2025, 80 percent'';
(B) in subparagraph (A), as added by subparagraph (A), by
striking the period at the end and inserting ``; and''; and
(C) by adding at the end the following new subparagraph:
``(B) for 2025 and each subsequent year, the sum of--
``(i) with respect to applicable drugs (as defined in
section 1860D-14C(g)(2)), an amount equal to 20 percent of
such allowable reinsurance costs attributable to that
portion of gross covered prescription drug costs as
specified in paragraph (3) incurred in the coverage year
after such individual has incurred costs that exceed the
annual out-of-pocket threshold specified in section 1860D-
2(b)(4)(B); and
``(ii) with respect to covered part D drugs that are
not applicable drugs (as so defined), an amount equal to 40
percent of such allowable reinsurance costs attributable to
that portion of gross covered prescription drug costs as
specified in paragraph (3) incurred in the coverage year
after such individual has incurred costs that exceed the
annual out-of-pocket threshold specified in section 1860D-
2(b)(4)(B).'';
(2) in paragraph (2)--
(A) by striking ``COSTS.--For purposes'' and inserting
``Costs.--
``(A) In general.--Subject to subparagraph (B), for
purposes''; and
(B) by adding at the end the following new subparagraph:
``(B) Inclusion of manufacturer discounts on applicable
drugs.--For purposes of applying subparagraph (A), the term
`allowable reinsurance costs' shall include the portion of the
negotiated price (as defined in section 1860D-14C(g)(6)) of an
applicable drug (as defined in section 1860D-14C(g)(2)) that
was paid by a manufacturer under the manufacturer discount
program under section 1860D-14C.''; and
(3) in paragraph (3)--
(A) in the first sentence, by striking ``For purposes'' and
inserting ``Subject to paragraph (2)(B), for purposes''; and
(B) in the second sentence, by inserting ``(or, with
respect to 2025 and subsequent years, in the case of an
applicable drug, as defined in section 1860D-14C(g)(2), by a
manufacturer)'' after ``by the individual or under the plan''.
(c) Manufacturer Discount Program.--
(1) In general.--Part D of title XVIII of the Social Security
Act (42 U.S.C. 1395w-101 through 42 U.S.C. 1395w-153), as amended
by section 11102, is amended by inserting after section 1860D-14B
the following new sections:
``SEC. 1860D-14C. MANUFACTURER DISCOUNT PROGRAM.
``(a) Establishment.--The Secretary shall establish a manufacturer
discount program (in this section referred to as the `program'). Under
the program, the Secretary shall enter into agreements described in
subsection (b) with manufacturers and provide for the performance of
the duties described in subsection (c).
``(b) Terms of Agreement.--
``(1) In general.--
``(A) Agreement.--An agreement under this section shall
require the manufacturer to provide, in accordance with this
section, discounted prices for applicable drugs of the
manufacturer that are dispensed to applicable beneficiaries on
or after January 1, 2025.
``(B) Clarification.--Nothing in this section shall be
construed as affecting--
``(i) the application of a coinsurance of 25 percent of
the negotiated price, as applied under paragraph (2)(A) of
section 1860D-2(b), for costs described in such paragraph;
or
``(ii) the application of the copayment amount
described in paragraph (4)(A) of such section, with respect
to costs described in such paragraph.
``(C) Timing of agreement.--
``(i) Special rule for 2025.--In order for an agreement
with a manufacturer to be in effect under this section with
respect to the period beginning on January 1, 2025, and
ending on December 31, 2025, the manufacturer shall enter
into such agreement not later than March 1, 2024.
``(ii) 2026 and subsequent years.--In order for an
agreement with a manufacturer to be in effect under this
section with respect to plan year 2026 or a subsequent plan
year, the manufacturer shall enter into such agreement not
later than a calendar quarter or semi-annual deadline
established by the Secretary.
``(2) Provision of appropriate data.--Each manufacturer with an
agreement in effect under this section shall collect and have
available appropriate data, as determined by the Secretary, to
ensure that it can demonstrate to the Secretary compliance with the
requirements under the program.
``(3) Compliance with requirements for administration of
program.--Each manufacturer with an agreement in effect under this
section shall comply with requirements imposed by the Secretary, as
applicable, for purposes of administering the program, including
any determination under subparagraph (A) of subsection (c)(1) or
procedures established under such subsection (c)(1).
``(4) Length of agreement.--
``(A) In general.--An agreement under this section shall be
effective for an initial period of not less than 12 months and
shall be automatically renewed for a period of not less than 1
year unless terminated under subparagraph (B).
``(B) Termination.--
``(i) By the secretary.--The Secretary shall provide
for termination of an agreement under this section for a
knowing and willful violation of the requirements of the
agreement or other good cause shown. Such termination shall
not be effective earlier than 30 days after the date of
notice to the manufacturer of such termination. The
Secretary shall provide, upon request, a manufacturer with
a hearing concerning such a termination, and such hearing
shall take place prior to the effective date of the
termination with sufficient time for such effective date to
be repealed if the Secretary determines appropriate.
``(ii) By a manufacturer.--A manufacturer may terminate
an agreement under this section for any reason. Any such
termination shall be effective, with respect to a plan
year--
``(I) if the termination occurs before January 31
of a plan year, as of the day after the end of the plan
year; and
``(II) if the termination occurs on or after
January 31 of a plan year, as of the day after the end
of the succeeding plan year.
``(iii) Effectiveness of termination.--Any termination
under this subparagraph shall not affect discounts for
applicable drugs of the manufacturer that are due under the
agreement before the effective date of its termination.
``(5) Effective date of agreement.--An agreement under this
section shall take effect at the start of a calendar quarter or
another date specified by the Secretary.
``(c) Duties Described.--The duties described in this subsection
are the following:
``(1) Administration of program.--Administering the program,
including--
``(A) the determination of the amount of the discounted
price of an applicable drug of a manufacturer;
``(B) the establishment of procedures to ensure that, not
later than the applicable number of calendar days after the
dispensing of an applicable drug by a pharmacy or mail order
service, the pharmacy or mail order service is reimbursed for
an amount equal to the difference between--
``(i) the negotiated price of the applicable drug; and
``(ii) the discounted price of the applicable drug;
``(C) the establishment of procedures to ensure that the
discounted price for an applicable drug under this section is
applied before any coverage or financial assistance under other
health benefit plans or programs that provide coverage or
financial assistance for the purchase or provision of
prescription drug coverage on behalf of applicable
beneficiaries as specified by the Secretary; and
``(D) providing a reasonable dispute resolution mechanism
to resolve disagreements between manufacturers, prescription
drug plans and MA-PD plans, and the Secretary.
``(2) Monitoring compliance.--The Secretary shall monitor
compliance by a manufacturer with the terms of an agreement under
this section.
``(3) Collection of data from prescription drug plans and ma-pd
plans.--The Secretary may collect appropriate data from
prescription drug plans and MA-PD plans in a timeframe that allows
for discounted prices to be provided for applicable drugs under
this section.
``(d) Administration.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall provide for the implementation of this section, including the
performance of the duties described in subsection (c).
``(2) Limitation.--In providing for the implementation of this
section, the Secretary shall not receive or distribute any funds of
a manufacturer under the program.
``(e) Civil Money Penalty.--
``(1) In general.--A manufacturer that fails to provide
discounted prices for applicable drugs of the manufacturer
dispensed to applicable beneficiaries in accordance with an
agreement in effect under this section shall be subject to a civil
money penalty for each such failure in an amount the Secretary
determines is equal to the sum of--
``(A) the amount that the manufacturer would have paid with
respect to such discounts under the agreement, which will then
be used to pay the discounts which the manufacturer had failed
to provide; and
``(B) 25 percent of such amount.
``(2) Application.--The provisions of section 1128A (other than
subsections (a) and (b)) shall apply to a civil money penalty under
this subsection in the same manner as such provisions apply to a
penalty or proceeding under section 1128A(a).
``(f) Clarification Regarding Availability of Other Covered Part D
Drugs.--Nothing in this section shall prevent an applicable beneficiary
from purchasing a covered part D drug that is not an applicable drug
(including a generic drug or a drug that is not on the formulary of the
prescription drug plan or MA-PD plan that the applicable beneficiary is
enrolled in).
``(g) Definitions.--In this section:
``(1) Applicable beneficiary.--The term `applicable
beneficiary' means an individual who, on the date of dispensing a
covered part D drug--
``(A) is enrolled in a prescription drug plan or an MA-PD
plan;
``(B) is not enrolled in a qualified retiree prescription
drug plan; and
``(C) has incurred costs, as determined in accordance with
section 1860D-2(b)(4)(C), for covered part D drugs in the year
that exceed the annual deductible specified in section 1860D-
2(b)(1).
``(2) Applicable drug.--The term `applicable drug', with
respect to an applicable beneficiary--
``(A) means a covered part D drug--
``(i) approved under a new drug application under
section 505(c) of the Federal Food, Drug, and Cosmetic Act
or, in the case of a biologic product, licensed under
section 351 of the Public Health Service Act; and
``(ii)(I) if the PDP sponsor of the prescription drug
plan or the MA organization offering the MA-PD plan uses a
formulary, which is on the formulary of the prescription
drug plan or MA-PD plan that the applicable beneficiary is
enrolled in;
``(II) if the PDP sponsor of the prescription drug plan
or the MA organization offering the MA-PD plan does not use
a formulary, for which benefits are available under the
prescription drug plan or MA-PD plan that the applicable
beneficiary is enrolled in; or
``(III) is provided through an exception or appeal; and
``(B) does not include a selected drug (as referred to
under section 1192(c)) during a price applicability period (as
defined in section 1191(b)(2)) with respect to such drug.
``(3) Applicable number of calendar days.--The term `applicable
number of calendar days' means--
``(A) with respect to claims for reimbursement submitted
electronically, 14 days; and
``(B) with respect to claims for reimbursement submitted
otherwise, 30 days.
``(4) Discounted price.--
``(A) In general.--The term `discounted price' means,
subject to subparagraphs (B) and (C), with respect to an
applicable drug of a manufacturer dispensed during a year to an
applicable beneficiary--
``(i) who has not incurred costs, as determined in
accordance with section 1860D-2(b)(4)(C), for covered part
D drugs in the year that are equal to or exceed the annual
out-of-pocket threshold specified in section 1860D-
2(b)(4)(B)(i) for the year, 90 percent of the negotiated
price of such drug; and
``(ii) who has incurred such costs, as so determined,
in the year that are equal to or exceed such threshold for
the year, 80 percent of the negotiated price of such drug.
``(B) Phase-in for certain drugs dispensed to lis
beneficiaries.--
``(i) In general.--In the case of an applicable drug of
a specified manufacturer (as defined in clause (ii)) that
is marketed as of the date of enactment of this
subparagraph and dispensed for an applicable beneficiary
who is a subsidy eligible individual (as defined in section
1860D-14(a)(3)), the term `discounted price' means the
specified LIS percent (as defined in clause (iii)) of the
negotiated price of the applicable drug of the
manufacturer.
``(ii) Specified manufacturer.--
``(I) In general.--In this subparagraph, subject to
subclause (II), the term `specified manufacturer' means
a manufacturer of an applicable drug for which, in
2021--
``(aa) the manufacturer had a coverage gap
discount agreement under section 1860D-14A;
``(bb) the total expenditures for all of the
specified drugs of the manufacturer covered by such
agreement or agreements for such year and covered
under this part during such year represented less
than 1.0 percent of the total expenditures under
this part for all covered Part D drugs during such
year; and
``(cc) the total expenditures for all of the
specified drugs of the manufacturer that are single
source drugs and biological products for which
payment may be made under part B during such year
represented less than 1.0 percent of the total
expenditures under part B for all drugs or
biological products for which payment may be made
under such part during such year.
``(II) Specified drugs.--
``(aa) In general.--For purposes of this
clause, the term `specified drug' means, with
respect to a specified manufacturer, for 2021, an
applicable drug that is produced, prepared,
propagated, compounded, converted, or processed by
the manufacturer.
``(bb) Aggregation rule.--All persons treated
as a single employer under subsection (a) or (b) of
section 52 of the Internal Revenue Code of 1986
shall be treated as one manufacturer for purposes
of this subparagraph. For purposes of making a
determination pursuant to the previous sentence, an
agreement under this section shall require that a
manufacturer provide and attest to such information
as specified by the Secretary as necessary.
``(III) Limitation.--The term `specified
manufacturer' shall not include a manufacturer
described in subclause (I) if such manufacturer is
acquired after 2021 by another manufacturer that is not
a specified manufacturer, effective at the beginning of
the plan year immediately following such acquisition
or, in the case of an acquisition before 2025,
effective January 1, 2025.
``(iii) Specified lis percent.--In this subparagraph,
the `specified LIS percent' means, with respect to a year--
``(I) for an applicable drug dispensed for an
applicable beneficiary described in clause (i) who has
not incurred costs, as determined in accordance with
section 1860D-2(b)(4)(C), for covered part D drugs in
the year that are equal to or exceed the annual out-of-
pocket threshold specified in section 1860D-
2(b)(4)(B)(i) for the year--
``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent; and
``(ee) for 2029 and each subsequent year, 90
percent; and
``(II) for an applicable drug dispensed for an
applicable beneficiary described in clause (i) who has
incurred costs, as determined in accordance with
section 1860D-2(b)(4)(C), for covered part D drugs in
the year that are equal to or exceed the annual out-of-
pocket threshold specified in section 1860D-
2(b)(4)(B)(i) for the year--
``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent;
``(ee) for 2029, 90 percent;
``(ff) for 2030, 85 percent; and
``(gg) for 2031 and each subsequent year, 80
percent.
``(C) Phase-in for specified small manufacturers.--
``(i) In general.--In the case of an applicable drug of
a specified small manufacturer (as defined in clause (ii))
that is marketed as of the date of enactment of this
subparagraph and dispensed for an applicable beneficiary,
the term `discounted price' means the specified small
manufacturer percent (as defined in clause (iii)) of the
negotiated price of the applicable drug of the
manufacturer.
``(ii) Specified small manufacturer.--
``(I) In general.--In this subparagraph, subject to
subclause (III), the term `specified small
manufacturer' means a manufacturer of an applicable
drug for which, in 2021--
``(aa) the manufacturer is a specified
manufacturer (as defined in subparagraph (B)(ii));
and
``(bb) the total expenditures under part D for
any one of the specified small manufacturer drugs
of the manufacturer that are covered by the
agreement or agreements under section 1860D-14A of
such manufacturer for such year and covered under
this part during such year are equal to or more
than 80 percent of the total expenditures under
this part for all specified small manufacturer
drugs of the manufacturer that are covered by such
agreement or agreements for such year and covered
under this part during such year.
``(II) Specified small manufacturer drugs.--
``(aa) In general.--For purposes of this
clause, the term `specified small manufacturer
drugs' means, with respect to a specified small
manufacturer, for 2021, an applicable drug that is
produced, prepared, propagated, compounded,
converted, or processed by the manufacturer.
``(bb) Aggregation rule.--All persons treated
as a single employer under subsection (a) or (b) of
section 52 of the Internal Revenue Code of 1986
shall be treated as one manufacturer for purposes
of this subparagraph. For purposes of making a
determination pursuant to the previous sentence, an
agreement under this section shall require that a
manufacturer provide and attest to such information
as specified by the Secretary as necessary.
``(III) Limitation.--The term `specified small
manufacturer' shall not include a manufacturer
described in subclause (I) if such manufacturer is
acquired after 2021 by another manufacturer that is not
a specified small manufacturer, effective at the
beginning of the plan year immediately following such
acquisition or, in the case of an acquisition before
2025, effective January 1, 2025.
``(iii) Specified small manufacturer percent.--In this
subparagraph, the term `specified small manufacturer
percent' means, with respect to a year--
``(I) for an applicable drug dispensed for an
applicable beneficiary who has not incurred costs, as
determined in accordance with section 1860D-2(b)(4)(C),
for covered part D drugs in the year that are equal to
or exceed the annual out-of-pocket threshold specified
in section 1860D-2(b)(4)(B)(i) for the year--
``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent; and
``(ee) for 2029 and each subsequent year, 90
percent; and
``(II) for an applicable drug dispensed for an
applicable beneficiary who has incurred costs, as
determined in accordance with section 1860D-2(b)(4)(C),
for covered part D drugs in the year that are equal to
or exceed the annual out-of-pocket threshold specified
in section 1860D-2(b)(4)(B)(i) for the year--
``(aa) for 2025, 99 percent;
``(bb) for 2026, 98 percent;
``(cc) for 2027, 95 percent;
``(dd) for 2028, 92 percent;
``(ee) for 2029, 90 percent;
``(ff) for 2030, 85 percent; and
``(gg) for 2031 and each subsequent year, 80
percent.
``(D) Total expenditures.--For purposes of this paragraph,
the term `total expenditures' includes, in the case of
expenditures with respect to part D, the total gross covered
prescription drug costs as defined in section 1860D-15(b)(3).
The term `total expenditures' excludes, in the case of
expenditures with respect to part B, expenditures for a drug or
biological that are bundled or packaged into the payment for
another service.
``(E) Special case for certain claims.--
``(i) Claims spanning deductible.--In the case where
the entire amount of the negotiated price of an individual
claim for an applicable drug with respect to an applicable
beneficiary does not fall above the annual deductible
specified in section 1860D-2(b)(1) for the year, the
manufacturer of the applicable drug shall provide the
discounted price under this section on only the portion of
the negotiated price of the applicable drug that falls
above such annual deductible.
``(ii) Claims spanning out-of-pocket threshold.--In the
case where the entire amount of the negotiated price of an
individual claim for an applicable drug with respect to an
applicable beneficiary does not fall entirely below or
entirely above the annual out-of-pocket threshold specified
in section 1860D-2(b)(4)(B)(i) for the year, the
manufacturer of the applicable drug shall provide the
discounted price--
``(I) in accordance with subparagraph (A)(i) on the
portion of the negotiated price of the applicable drug
that falls below such threshold; and
``(II) in accordance with subparagraph (A)(ii) on
the portion of such price of such drug that falls at or
above such threshold.
``(5) Manufacturer.--The term `manufacturer' means any entity
which is engaged in the production, preparation, propagation,
compounding, conversion, or processing of prescription drug
products, either directly or indirectly by extraction from
substances of natural origin, or independently by means of chemical
synthesis, or by a combination of extraction and chemical
synthesis. Such term does not include a wholesale distributor of
drugs or a retail pharmacy licensed under State law.
``(6) Negotiated price.--The term `negotiated price' has the
meaning given such term for purposes of section 1860D-2(d)(1)(B),
and, with respect to an applicable drug, such negotiated price
shall include any dispensing fee and, if applicable, any vaccine
administration fee for the applicable drug.
``(7) Qualified retiree prescription drug plan.--The term
`qualified retiree prescription drug plan' has the meaning given
such term in section 1860D-22(a)(2).
``SEC. 1860D-14D. SELECTED DRUG SUBSIDY PROGRAM.
``With respect to covered part D drugs that would be applicable
drugs (as defined in section 1860D-14C(g)(2)) but for the application
of subparagraph (B) of such section, the Secretary shall provide a
process whereby, in the case of an applicable beneficiary (as defined
in section 1860D-14C(g)(1)) who, with respect to a year, is enrolled in
a prescription drug plan or is enrolled in an MA-PD plan, has not
incurred costs that are equal to or exceed the annual out-of-pocket
threshold specified in section 1860D-2(b)(4)(B)(i), and is dispensed
such a drug, the Secretary (periodically and on a timely basis)
provides the PDP sponsor or the MA organization offering the plan, a
subsidy with respect to such drug that is equal to 10 percent of the
negotiated price (as defined in section 1860D-14C(g)(6)) of such
drug.''.
(2) Sunset of medicare coverage gap discount program.--Section
1860D-14A of the Social Security Act (42 U.S.C. 1395w-114a) is
amended--
(A) in subsection (a), in the first sentence, by striking
``The Secretary'' and inserting ``Subject to subsection (h),
the Secretary''; and
(B) by adding at the end the following new subsection:
``(h) Sunset of Program.--
``(1) In general.--The program shall not apply with respect to
applicable drugs dispensed on or after January 1, 2025, and,
subject to paragraph (2), agreements under this section shall be
terminated as of such date.
``(2) Continued application for applicable drugs dispensed
prior to sunset.--The provisions of this section (including all
responsibilities and duties) shall continue to apply on and after
January 1, 2025, with respect to applicable drugs dispensed prior
to such date.''.
(3) Selected drug subsidy payments from medicare prescription
drug account.--Section 1860D-16(b)(1) of the Social Security Act
(42 U.S.C. 1395w-116(b)(1)) is amended--
(A) in subparagraph (C), by striking ``and'' at the end;
(B) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following new subparagraph:
``(E) payments under section 1860D-14D (relating to
selected drug subsidy payments).''.
(d) Medicare Part D Premium Stabilization.--
(1) 2024 through 2029.--Section 1860D-13 of the Social Security
Act (42 U.S.C. 1395w-113) is amended--
(A) in subsection (a)--
(i) in paragraph (1)(A), by inserting ``or (8) (as
applicable)'' after ``paragraph (2)'';
(ii) in paragraph (2), in the matter preceding
subparagraph (A), by striking ``The base'' and inserting
``Subject to paragraph (8), the base'';
(iii) in paragraph (7)--
(I) in subparagraph (B)(ii), by inserting ``or (8)
(as applicable)'' after ``paragraph (2)''; and
(II) in subparagraph (E)(i), by inserting ``or (8)
(as applicable)'' after ``paragraph (2)''; and
(iv) by adding at the end the following new paragraph:
``(8) Premium stabilization.--
``(A) In general.--The base beneficiary premium under this
paragraph for a prescription drug plan for a month in 2024
through 2029 shall be computed as follows:
``(i) 2024.--The base beneficiary premium for a month
in 2024 shall be equal to the lesser of--
``(I) the base beneficiary premium computed under
paragraph (2) for a month in 2023 increased by 6
percent; or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2024 that would have
applied if this paragraph had not been enacted.
``(ii) 2025.--The base beneficiary premium for a month
in 2025 shall be equal to the lesser of--
``(I) the base beneficiary premium computed under
clause (i) for a month in 2024 increased by 6 percent;
or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2025 that would have
applied if this paragraph had not been enacted.
``(iii) 2026.--The base beneficiary premium for a month
in 2026 shall be equal to the lesser of--
``(I) the base beneficiary premium computed under
clause (ii) for a month in 2025 increased by 6 percent;
or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2026 that would have
applied if this paragraph had not been enacted.
``(iv) 2027.--The base beneficiary premium for a month
in 2027 shall be equal to the lesser of--
``(I) the base beneficiary premium computed under
clause (iii) for a month in 2026 increased by 6
percent; or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2027 that would have
applied if this paragraph had not been enacted.
``(v) 2028.--The base beneficiary premium for a month
in 2028 shall be equal to the lesser of--
``(I) the base beneficiary premium computed under
clause (iv) for a month in 2027 increased by 6 percent;
or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2028 that would have
applied if this paragraph had not been enacted.
``(vi) 2029.--The base beneficiary premium for a month
in 2029 shall be equal to the lesser of--
``(I) the base beneficiary premium computed under
clause (v) for a month in 2028 increased by 6 percent;
or
``(II) the base beneficiary premium computed under
paragraph (2) for a month in 2029 that would have
applied if this paragraph had not been enacted.
``(B) Clarification regarding 2030 and subsequent years.--
The base beneficiary premium for a month in 2030 or a
subsequent year shall be computed under paragraph (2) without
regard to this paragraph.''; and
(B) in subsection (b)(3)(A)(ii), by striking ``subsection
(a)(2)'' and inserting ``paragraph (2) or (8) of subsection (a)
(as applicable)''.
(2) Adjustment to beneficiary premium percentage for 2030 and
subsequent years.--Section 1860D-13(a) of the Social Security Act
(42 U.S.C. 1395w-113(a)), as amended by paragraph (1), is amended--
(A) in paragraph (3)(A), by inserting ``(or, for 2030 and
each subsequent year, the percent specified under paragraph
(9))'' after ``25.5 percent''; and
(B) by adding at the end the following new paragraph:
``(9) Percent specified.--
``(A) In general.--Subject to subparagraph (B), for
purposes of paragraph (3)(A), the percent specified under this
paragraph for 2030 and each subsequent year is the percent that
the Secretary determines is necessary to ensure that the base
beneficiary premium computed under paragraph (2) for a month in
2030 is equal to the lesser of--
``(i) the base beneficiary premium computed under
paragraph (8)(A)(vi) for a month in 2029 increased by 6
percent; or
``(ii) the base beneficiary premium computed under
paragraph (2) for a month in 2030 that would have applied
if this paragraph had not been enacted.
``(B) Floor.--The percent specified under subparagraph (A)
may not be less than 20 percent.''.
(3) Conforming amendments.--
(A) Section 1854(b)(2)(B) of the Social Security Act 42
U.S.C. 1395w-24(b)(2)(B)) is amended by striking ``section
1860D-13(a)(2)'' and inserting ``paragraph (2) or (8) (as
applicable) of section 1860D-13(a)''.
(B) Section 1860D-11(g)(6) of the Social Security Act (42
U.S.C. 1395w-111(g)(6)) is amended by inserting ``(or, for 2030
and each subsequent year, the percent specified under section
1860D-13(a)(9))'' after ``25.5 percent''.
(C) Section 1860D-13(a)(7)(B)(i) of the Social Security Act
(42 U.S.C. 1395w-113(a)(7)(B)(i)) is amended--
(i) in subclause (I), by inserting ``(or, for 2030 and
each subsequent year, the percent specified under paragraph
(9))'' after ``25.5 percent''; and
(ii) in subclause (II), by inserting ``(or, for 2030
and each subsequent year, the percent specified under
paragraph (9))'' after ``25.5 percent''.
(D) Section 1860D-15(a) of the Social Security Act (42
U.S.C. 1395w-115(a)) is amended--
(i) in the matter preceding paragraph (1), by inserting
``(or, for each of 2024 through 2029, the percent
applicable as a result of the application of section 1860D-
13(a)(8), or, for 2030 and each subsequent year, 100
percent minus the percent specified under section 1860D-
13(a)(9))'' after ``74.5 percent''; and
(ii) in paragraph (1)(B), by striking ``paragraph (2)
of section 1860D-13(a)'' and inserting ``paragraph (2) or
(8) of section 1860D-13(a) (as applicable)''.
(e) Conforming Amendments.--
(1) Section 1860D-2 of the Social Security Act (42 U.S.C.
1395w-102) is amended--
(A) in subsection (a)(2)(A)(i)(I), by striking ``, or an
increase in the initial'' and inserting ``or, for a year
preceding 2025, an increase in the initial'';
(B) in subsection (c)(1)(C)--
(i) in the subparagraph heading, by striking ``at
initial coverage limit''; and
(ii) by inserting ``for a year preceding 2025 or the
annual out-of-pocket threshold specified in subsection
(b)(4)(B) for the year for 2025 and each subsequent year''
after ``subsection (b)(3) for the year'' each place it
appears; and
(C) in subsection (d)(1)(A), by striking ``or an initial''
and inserting ``or, for a year preceding 2025, an initial''.
(2) Section 1860D-4(a)(4)(B)(i) of the Social Security Act (42
U.S.C. 1395w-104(a)(4)(B)(i)) is amended by striking ``the
initial'' and inserting ``for a year preceding 2025, the initial''.
(3) Section 1860D-14(a) of the Social Security Act (42 U.S.C.
1395w-114(a)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (C), by striking ``The
continuation'' and inserting ``For a year preceding 2025,
the continuation'';
(ii) in subparagraph (D)(iii), by striking ``1860D-
2(b)(4)(A)(i)(I)'' and inserting ``1860D-
2(b)(4)(A)(i)(I)(aa)''; and
(iii) in subparagraph (E), by striking ``The
elimination'' and inserting ``For a year preceding 2024,
the elimination''; and
(B) in paragraph (2)(E), by striking ``1860D-
2(b)(4)(A)(i)(I)'' and inserting ``1860D-
2(b)(4)(A)(i)(I)(aa)''.
(4) Section 1860D-21(d)(7) of the Social Security Act (42
U.S.C. 1395w-131(d)(7)) is amended by striking ``section 1860D-
2(b)(4)(B)(i)'' and inserting ``section 1860D-2(b)(4)(C)(i)''.
(5) Section 1860D-22(a)(2)(A) of the Social Security Act (42
U.S.C. 1395w-132(a)(2)(A)) is amended--
(A) by striking ``the value of any discount'' and inserting
the following: ``the value of--
``(i) for years prior to 2025, any discount'';
(B) in clause (i), as inserted by subparagraph (A) of this
paragraph, by striking the period at the end and inserting ``;
and''; and
(C) by adding at the end the following new clause:
``(ii) for 2025 and each subsequent year, any discount
provided pursuant to section 1860D-14C.''.
(6) Section 1860D-41(a)(6) of the Social Security Act (42
U.S.C. 1395w-151(a)(6)) is amended--
(A) by inserting ``for a year before 2025'' after ``1860D-
2(b)(3)''; and
(B) by inserting ``for such year'' before the period.
(7) Section 1860D-43 of the Social Security Act (42 U.S.C.
1395w-153) is amended--
(A) in subsection (a)--
(i) by striking paragraph (1) and inserting the
following:
``(1) participate in--
``(A) for 2011 through 2024, the Medicare coverage gap
discount program under section 1860D-14A; and
``(B) for 2025 and each subsequent year, the manufacturer
discount program under section 1860D-14C;'';
(ii) by striking paragraph (2) and inserting the
following:
``(2) have entered into and have in effect--
``(A) for 2011 through 2024, an agreement described in
subsection (b) of section 1860D-14A with the Secretary; and
``(B) for 2025 and each subsequent year, an agreement
described in subsection (b) of section 1860D-14C with the
Secretary; and''; and
(iii) in paragraph (3), by striking ``such section''
and inserting ``section 1860D-14A''; and
(B) by striking subsection (b) and inserting the following:
``(b) Effective Date.--Paragraphs (1)(A), (2)(A), and (3) of
subsection (a) shall apply to covered part D drugs dispensed under this
part on or after January 1, 2011, and before January 1, 2025, and
paragraphs (1)(B) and (2)(B) of such subsection shall apply to covered
part D drugs dispensed under this part on or after January 1, 2025.''.
(8) Section 1927 of the Social Security Act (42 U.S.C. 1396r-8)
is amended--
(A) in subsection (c)(1)(C)(i)(VI), by inserting before the
period at the end the following: ``or under the manufacturer
discount program under section 1860D-14C''; and
(B) in subsection (k)(1)(B)(i)(V), by inserting before the
period at the end the following: ``or under section 1860D-
14C''.
(f) Implementation for 2024 Through 2026.--The Secretary shall
implement this section, including the amendments made by this section,
for 2024, 2025, and 2026 by program instruction or other forms of
program guidance.
(g) Funding.--In addition to amounts otherwise available, there are
appropriated to the Centers for Medicare & Medicaid Services, out of
any money in the Treasury not otherwise appropriated, $341,000,000 for
fiscal year 2022, including $20,000,000 and $65,000,000 to carry out
the provisions of, including the amendments made by, this section in
fiscal years 2022 and 2023, respectively, and $32,000,000 to carry out
the provisions of, including the amendments made by, this section in
each of fiscal years 2024 through 2031, to remain available until
expended.
SEC. 11202. MAXIMUM MONTHLY CAP ON COST-SHARING PAYMENTS UNDER
PRESCRIPTION DRUG PLANS AND MA-PD PLANS.
(a) In General.--Section 1860D-2(b) of the Social Security Act (42
U.S.C. 1395w-102(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by striking ``and (D)'' and
inserting ``, (D), and (E)''; and
(B) by adding at the end the following new subparagraph:
``(E) Maximum monthly cap on cost-sharing payments.--
``(i) In general.--For plan years beginning on or after
January 1, 2025, each PDP sponsor offering a prescription
drug plan and each MA organization offering an MA-PD plan
shall provide to any enrollee of such plan, including an
enrollee who is a subsidy eligible individual (as defined
in paragraph (3) of section 1860D-14(a)), the option to
elect with respect to a plan year to pay cost-sharing under
the plan in monthly amounts that are capped in accordance
with this subparagraph.
``(ii) Determination of maximum monthly cap.--For each
month in the plan year for which an enrollee in a
prescription drug plan or an MA-PD plan has made an
election pursuant to clause (i), the PDP sponsor or MA
organization shall determine a maximum monthly cap (as
defined in clause (iv)) for such enrollee.
``(iii) Beneficiary monthly payments.--With respect to
an enrollee who has made an election pursuant to clause
(i), for each month described in clause (ii), the PDP
sponsor or MA organization shall bill such enrollee an
amount (not to exceed the maximum monthly cap) for the out-
of-pocket costs of such enrollee in such month.
``(iv) Maximum monthly cap defined.--In this
subparagraph, the term `maximum monthly cap' means, with
respect to an enrollee--
``(I) for the first month for which the enrollee
has made an election pursuant to clause (i), an amount
determined by calculating--
``(aa) the annual out-of-pocket threshold
specified in paragraph (4)(B) minus the incurred
costs of the enrollee as described in paragraph
(4)(C); divided by
``(bb) the number of months remaining in the
plan year; and
``(II) for a subsequent month, an amount determined
by calculating--
``(aa) the sum of any remaining out-of-pocket
costs owed by the enrollee from a previous month
that have not yet been billed to the enrollee and
any additional out-of-pocket costs incurred by the
enrollee; divided by
``(bb) the number of months remaining in the
plan year.
``(v) Additional requirements.--The following
requirements shall apply with respect to the option to make
an election pursuant to clause (i) under this subparagraph:
``(I) Secretarial responsibilities.--The Secretary
shall provide information to part D eligible
individuals on the option to make such election through
educational materials, including through the notices
provided under section 1804(a).
``(II) Timing of election.--An enrollee in a
prescription drug plan or an MA-PD plan may make such
an election--
``(aa) prior to the beginning of the plan year;
or
``(bb) in any month during the plan year.
``(III) Pdp sponsor and ma organization
responsibilities.--Each PDP sponsor offering a
prescription drug plan or MA organization offering an
MA-PD plan--
``(aa) may not limit the option for an enrollee
to make such an election to certain covered part D
drugs;
``(bb) shall, prior to the plan year, notify
prospective enrollees of the option to make such an
election in promotional materials;
``(cc) shall include information on such option
in enrollee educational materials;
``(dd) shall have in place a mechanism to
notify a pharmacy during the plan year when an
enrollee incurs out-of-pocket costs with respect to
covered part D drugs that make it likely the
enrollee may benefit from making such an election;
``(ee) shall provide that a pharmacy, after
receiving a notification described in item (dd)
with respect to an enrollee, informs the enrollee
of such notification;
``(ff) shall ensure that such an election by an
enrollee has no effect on the amount paid to
pharmacies (or the timing of such payments) with
respect to covered part D drugs dispensed to the
enrollee; and
``(gg) shall have in place a financial
reconciliation process to correct inaccuracies in
payments made by an enrollee under this
subparagraph with respect to covered part D drugs
during the plan year.
``(IV) Failure to pay amount billed.--If an
enrollee fails to pay the amount billed for a month as
required under this subparagraph--
``(aa) the election of the enrollee pursuant to
clause (i) shall be terminated and the enrollee
shall pay the cost-sharing otherwise applicable for
any covered part D drugs subsequently dispensed to
the enrollee up to the annual out-of-pocket
threshold specified in paragraph (4)(B); and
``(bb) the PDP sponsor or MA organization may
preclude the enrollee from making an election
pursuant to clause (i) in a subsequent plan year.
``(V) Clarification regarding past due amounts.--
Nothing in this subparagraph shall be construed as
prohibiting a PDP sponsor or an MA organization from
billing an enrollee for an amount owed under this
subparagraph.
``(VI) Treatment of unsettled balances.--Any
unsettled balances with respect to amounts owed under
this subparagraph shall be treated as plan losses and
the Secretary shall not be liable for any such balances
outside of those assumed as losses estimated in plan
bids.''; and
(2) in paragraph (4)--
(A) in subparagraph (C), by striking ``subparagraph (E)''
and inserting ``subparagraph (E) or subparagraph (F)''; and
(B) by adding at the end the following new subparagraph:
``(F) Inclusion of costs paid under maximum monthly cap
option.--In applying subparagraph (A), with respect to an
enrollee who has made an election pursuant to clause (i) of
paragraph (2)(E), costs shall be treated as incurred if such
costs are paid by a PDP sponsor or an MA organization under the
option provided under such paragraph.''.
(b) Application to Alternative Prescription Drug Coverage.--Section
1860D-2(c) of the Social Security Act (42 U.S.C. 1395w-102(c)) is
amended by adding at the end the following new paragraph:
``(4) Same maximum monthly cap on cost-sharing.--The maximum
monthly cap on cost-sharing payments shall apply to coverage with
respect to an enrollee who has made an election pursuant to clause
(i) of subsection (b)(2)(E) under the option provided under such
subsection.''.
(c) Implementation for 2025.--The Secretary shall implement this
section, including the amendments made by this section, for 2025 by
program instruction or other forms of program guidance.
(d) Funding.--In addition to amounts otherwise available, there are
appropriated to the Centers for Medicare & Medicaid Services, out of
any money in the Treasury not otherwise appropriated, $10,000,000 for
fiscal year 2023, to remain available until expended, to carry out the
provisions of, including the amendments made by, this section.
PART 4--CONTINUED DELAY OF IMPLEMENTATION OF PRESCRIPTION DRUG REBATE
RULE
SEC. 11301. EXTENSION OF MORATORIUM ON IMPLEMENTATION OF RULE RELATING
TO ELIMINATING THE ANTI-KICKBACK STATUTE SAFE HARBOR PROTECTION FOR
PRESCRIPTION DRUG REBATES.
The Secretary of Health and Human Services shall not, prior to
January 1, 2032, implement, administer, or enforce the provisions of
the final rule published by the Office of the Inspector General of the
Department of Health and Human Services on November 30, 2020, and
titled ``Fraud and Abuse; Removal of Safe Harbor Protection for Rebates
Involving Prescription Pharmaceuticals and Creation of New Safe Harbor
Protection for Certain Point-of-Sale Reductions in Price on
Prescription Pharmaceuticals and Certain Pharmacy Benefit Manager
Service Fees'' (85 Fed. Reg. 76666).
PART 5--MISCELLANEOUS
SEC. 11401. COVERAGE OF ADULT VACCINES RECOMMENDED BY THE ADVISORY
COMMITTEE ON IMMUNIZATION PRACTICES UNDER MEDICARE PART D.
(a) Ensuring Treatment of Cost-sharing and Deductible Is Consistent
With Treatment of Vaccines Under Medicare Part B.--Section 1860D-2 of
the Social Security Act (42 U.S.C. 1395w-102), as amended by sections
11201 and 11202, is amended--
(1) in subsection (b)--
(A) in paragraph (1)(A), by striking ``The coverage'' and
inserting ``Subject to paragraph (8), the coverage'';
(B) in paragraph (2)--
(i) in subparagraph (A), by inserting ``and paragraph
(8)'' after ``and (E)'';
(ii) in subparagraph (C)(i), in the matter preceding
subclause (I), by striking ``paragraph (4)'' and inserting
``paragraphs (4) and (8)''; and
(iii) in subparagraph (D)(i), in the matter preceding
subclause (I), by striking ``paragraph (4)'' and inserting
``paragraphs (4) and (8)'';
(C) in paragraph (3)(A), in the matter preceding clause
(i), by striking ``and (4)'' and inserting ``(4), and (8)'';
(D) in paragraph (4)(A)(i), by striking ``The coverage''
and inserting ``Subject to paragraph (8), the coverage''; and
(E) by adding at the end the following new paragraph:
``(8) Treatment of cost-sharing for adult vaccines recommended
by the advisory committee on immunization practices consistent with
treatment of vaccines under part b.--
``(A) In general.--For plan years beginning on or after
January 1, 2023, with respect to an adult vaccine recommended
by the Advisory Committee on Immunization Practices (as defined
in subparagraph (B))--
``(i) the deductible under paragraph (1) shall not
apply; and
``(ii) there shall be no coinsurance or other cost-
sharing under this part with respect to such vaccine.
``(B) Adult vaccines recommended by the advisory committee
on immunization practices.--For purposes of this paragraph, the
term `adult vaccine recommended by the Advisory Committee on
Immunization Practices' means a covered part D drug that is a
vaccine licensed under section 351 of the Public Health Service
Act for use by adult populations and administered in accordance
with recommendations of the Advisory Committee on Immunization
Practices of the Centers for Disease Control and Prevention.'';
and
(2) in subsection (c), by adding at the end the following new
paragraph:
``(5) Treatment of cost-sharing for adult vaccines recommended
by the advisory committee on immunization practices.--The coverage
is in accordance with subsection (b)(8).''.
(b) Conforming Amendments to Cost-sharing for Low-income
Individuals.--Section 1860D-14(a) of the Social Security Act (42 U.S.C.
1395w-114(a)), as amended by section 11201, is amended--
(1) in paragraph (1)(D), in each of clauses (ii) and (iii), by
striking ``In the case'' and inserting ``Subject to paragraph (6),
in the case'';
(2) in paragraph (2)--
(A) in subparagraph (B), by striking ``A reduction'' and
inserting ``Subject to section 1860D-2(b)(8), a reduction'';
(B) in subparagraph (D), by striking ``The substitution''
and inserting ``Subject to paragraph (6), the substitution'';
and
(C) in subparagraph (E), by striking ``subsection (c)'' and
inserting ``paragraph (6) of this subsection and subsection
(c)''; and
(3) by adding at the end the following new paragraph:
``(6) No application of cost-sharing or deductible for adult
vaccines recommended by the advisory committee on immunization
practices.--For plan years beginning on or after January 1, 2023,
with respect to an adult vaccine recommended by the Advisory
Committee on Immunization Practices (as defined in section 1860D-
2(b)(8)(B))--
``(A) the deductible under section 1860D-2(b)(1) shall not
apply; and
``(B) there shall be no cost-sharing under this section
with respect to such vaccine.''.
(c) Temporary Retrospective Subsidy.--
(1) In general.--Section 1860D-15 of the Social Security Act
(42 U.S.C. 1395w-115) is amended by adding at the end the following
new subsection:
``(h) Temporary Retrospective Subsidy for Reduction in Cost-sharing
and Deductible for Adult Vaccines Recommended by the Advisory Committee
on Immunization Practices During 2023.--
``(1) In general.--In addition to amounts otherwise payable
under this section to a PDP sponsor of a prescription drug plan or
an MA organization offering an MA-PD plan, for plan year 2023, the
Secretary shall provide the PDP sponsor or MA organization offering
the plan subsidies in an amount equal to the aggregate reduction in
cost-sharing and deductible by reason of the application of section
1860D-2(b)(8) for individuals under the plan during the year.
``(2) Timing.--The Secretary shall provide a subsidy under
paragraph (1), as applicable, not later than 18 months following
the end of the applicable plan year.''.
(2) Treatment as incurred costs.--Section 1860D-
2(b)(4)(C)(iii)(I) of the Social Security Act (42 U.S.C. 1395w-
102(b)(4)(C)(iii)(I)), as amended by section 11201(a)(3)(C), is
amended--
(A) in item (cc), by striking ``or'' at the end; and
(B) by adding at the end the following new item:
``(dd) under section 1860D-15(h); or''.
(d) Rule of Construction.--Nothing in this section shall be
construed as limiting coverage under part D of title XVIII of the
Social Security Act for vaccines that are not recommended by the
Advisory Committee on Immunization Practices.
(e) Implementation for 2023 Through 2025.--The Secretary shall
implement this section, including the amendments made by this section,
for 2023, 2024, and 2025, by program instruction or other forms of
program guidance.
SEC. 11402. PAYMENT FOR BIOSIMILAR BIOLOGICAL PRODUCTS DURING INITIAL
PERIOD.
Section 1847A(c)(4) of the Social Security Act (42 U.S.C. 1395w-
3a(c)(4)) is amended--
(1) in each of subparagraphs (A) and (B), by redesignating
clauses (i) and (ii) as subclauses (I) and (II), respectively, and
moving such subclauses 2 ems to the right;
(2) by redesignating subparagraphs (A) and (B) as clauses (i)
and (ii) and moving such clauses 2 ems to the right;
(3) by striking ``unavailable.--In the case'' and inserting
``unavailable.--
``(A) In general.--Subject to subparagraph (B), in the
case''; and
(4) by adding at the end the following new subparagraph:
``(B) Limitation on payment amount for biosimilar
biological products during initial period.--In the case of a
biosimilar biological product furnished on or after July 1,
2024, during the initial period described in subparagraph (A)
with respect to the biosimilar biological product, the amount
payable under this section for the biosimilar biological
product is the lesser of the following:
``(i) The amount determined under clause (ii) of such
subparagraph for the biosimilar biological product.
``(ii) The amount determined under subsection (b)(1)(B)
for the reference biological product.''.
SEC. 11403. TEMPORARY INCREASE IN MEDICARE PART B PAYMENT FOR CERTAIN
BIOSIMILAR BIOLOGICAL PRODUCTS.
Section 1847A(b)(8) of the Social Security Act (42 U.S.C. 1395w-
3a(b)(8)) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses (i)
and (ii), respectively, and moving the margin of each such
redesignated clause 2 ems to the right;
(2) by striking ``product.--The amount'' and inserting the
following: ``product.--
``(A) In general.--Subject to subparagraph (B), the
amount''; and
(3) by adding at the end the following new subparagraph:
``(B) Temporary payment increase.--
``(i) In general.--In the case of a qualifying
biosimilar biological product that is furnished during the
applicable 5-year period for such product, the amount
specified in this paragraph for such product with respect
to such period is the sum determined under subparagraph
(A), except that clause (ii) of such subparagraph shall be
applied by substituting `8 percent' for `6 percent'.
``(ii) Applicable 5-year period.--For purposes of
clause (i), the applicable 5-year period for a qualifying
biosimilar biological product is--
``(I) in the case of such a product for which
payment was made under this paragraph as of September
30, 2022, the 5-year period beginning on October 1,
2022; and
``(II) in the case of such a product for which
payment is first made under this paragraph during a
calendar quarter during the period beginning October 1,
2022, and ending December 31, 2027, the 5-year period
beginning on the first day of such calendar quarter
during which such payment is first made.
``(iii) Qualifying biosimilar biological product
defined.--For purposes of this subparagraph, the term
`qualifying biosimilar biological product' means a
biosimilar biological product described in paragraph (1)(C)
with respect to which--
``(I) in the case of a product described in clause
(ii)(I), the average sales price under paragraph
(8)(A)(i) for a calendar quarter during the 5-year
period described in such clause is not more than the
average sales price under paragraph (4)(A) for such
quarter for the reference biological product; and
``(II) in the case of a product described in clause
(ii)(II), the average sales price under paragraph
(8)(A)(i) for a calendar quarter during the 5-year
period described in such clause is not more than the
average sales price under paragraph (4)(A) for such
quarter for the reference biological product.''.
SEC. 11404. EXPANDING ELIGIBILITY FOR LOW-INCOME SUBSIDIES UNDER PART D
OF THE MEDICARE PROGRAM.
Section 1860D-14(a) of the Social Security Act (42 U.S.C. 1395w-
114(a)), as amended by sections 11201 and 11401, is amended--
(1) in the subsection heading, by striking ``Individuals'' and
all that follows through ``Line'' and inserting ``Certain
Individuals'';
(2) in paragraph (1)--
(A) by striking the paragraph heading and inserting
``Individuals with certain low incomes''; and
(B) in the matter preceding subparagraph (A)--
(i) by inserting ``(or, with respect to a plan year
beginning on or after January 1, 2024, 150 percent)'' after
``135 percent''; and
(ii) by inserting ``(or, with respect to a plan year
beginning on or after January 1, 2024, paragraph (3)(E))''
after ``the resources requirement described in paragraph
(3)(D)''; and
(3) in paragraph (2)--
(A) by striking the paragraph heading and inserting ``Other
low-income individuals''; and
(B) in the matter preceding subparagraph (A), by striking
``In the case of a subsidy'' and inserting ``With respect to a
plan year beginning before January 1, 2024, in the case of a
subsidy''.
SEC. 11405. IMPROVING ACCESS TO ADULT VACCINES UNDER MEDICAID AND CHIP.
(a) Medicaid.--
(1) Requiring coverage of adult vaccinations.--
(A) In general.--Section 1902(a)(10)(A) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)) is amended in the
matter preceding clause (i) by inserting ``(13)(B),'' after
``(5),''.
(B) Medically needy.--Section 1902(a)(10)(C)(iv) of such
Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is amended by inserting ``,
(13)(B),'' after ``(5)''.
(2) No cost sharing for vaccinations.--
(A) General cost-sharing limitations.--Section 1916 of the
Social Security Act (42 U.S.C. 1396o) is amended--
(i) in subsection (a)(2)--
(I) in subparagraph (G), by inserting a comma after
``State plan'';
(II) in subparagraph (H), by striking ``; or'' and
inserting a comma;
(III) in subparagraph (I), by striking ``; and''
and inserting ``, or''; and
(IV) by adding at the end the following new
subparagraph:
``(J) vaccines described in section 1905(a)(13)(B) and the
administration of such vaccines; and''; and
(ii) in subsection (b)(2)--
(I) in subparagraph (G), by inserting a comma after
``State plan'';
(II) in subparagraph (H), by striking ``; or'' and
inserting a comma;
(III) in subparagraph (I), by striking ``; and''
and inserting ``, or''; and
(IV) by adding at the end the following new
subparagraph:
``(J) vaccines described in section 1905(a)(13)(B) and the
administration of such vaccines; and''.
(B) Application to alternative cost sharing.--Section
1916A(b)(3)(B) of the Social Security Act (42 U.S.C. 1396o-
1(b)(3)(B)) is amended by adding at the end the following new
clause:
``(xiv) Vaccines described in section 1905(a)(13)(B)
and the administration of such vaccines.''.
(3) Increased fmap for adult vaccines and their
administration.--Section 1905(b) of the Social Security Act (42
U.S.C. 1396d(b)) is amended--
(A) by striking ``and (5)'' and inserting ``(5)'';
(B) by striking ``services and vaccines described in
subparagraphs (A) and (B) of subsection (a)(13), and prohibits
cost-sharing for such services and vaccines'' and inserting
``services described in subsection (a)(13)(A), and prohibits
cost-sharing for such services'';
(C) by striking ``medical assistance for such services and
vaccines'' and inserting ``medical assistance for such
services''; and
(D) by inserting ``, and (6) during the first 8 fiscal
quarters beginning on or after the effective date of this
clause, in the case of a State which, as of the date of
enactment of the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14',
provides medical assistance for vaccines described in
subsection (a)(13)(B) and their administration and prohibits
cost-sharing for such vaccines, the Federal medical assistance
percentage, as determined under this subsection and subsection
(y), shall be increased by 1 percentage point with respect to
medical assistance for such vaccines and their administration''
before the first period.
(b) CHIP.--
(1) Requiring coverage of adult vaccinations.--Section 2103(c)
of the Social Security Act (42 U.S.C. 1397cc(c)) is amended by
adding at the end the following paragraph:
``(12) Required coverage of approved, recommended adult
vaccines and their administration.--Regardless of the type of
coverage elected by a State under subsection (a), if the State
child health plan or a waiver of such plan provides child health
assistance or pregnancy-related assistance (as defined in section
2112) to an individual who is 19 years of age or older, such
assistance shall include coverage of vaccines described in section
1905(a)(13)(B) and their administration.''.
(2) No cost-sharing for vaccinations.--Section 2103(e)(2) of
such Act (42 U.S.C. 1397cc(e)(2)) is amended by inserting
``vaccines described in subsection (c)(12) (and the administration
of such vaccines),'' after ``in vitro diagnostic products described
in subsection (c)(10) (and administration of such products),''.
(c) Effective Date.--The amendments made by this section take
effect on the 1st day of the 1st fiscal quarter that begins on or after
the date that is 1 year after the date of enactment of this Act and
shall apply to expenditures made under a State plan or waiver of such
plan under title XIX of the Social Security Act (42 U.S.C. 1396 through
1396w-6) or under a State child health plan or waiver of such plan
under title XXI of such Act (42 U.S.C. 1397aa through 1397mm) on or
after such effective date.
SEC. 11406. APPROPRIATE COST-SHARING FOR COVERED INSULIN PRODUCTS UNDER
MEDICARE PART D.
(a) In General.--Section 1860D-2 of the Social Security Act (42
U.S.C. 1395w-102), as amended by sections 11201, 11202, and 11401, is
amended--
(1) in subsection (b)--
(A) in paragraph (1)(A), by striking ``paragraph (8)'' and
inserting ``paragraphs (8) and (9)'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``paragraph (8)''
and inserting ``paragraphs (8) and (9)'';
(ii) in subparagraph (C)(i), in the matter preceding
subclause (I), by striking ``and (8)'' and inserting ``,
(8), and (9)''; and
(iii) in subparagraph (D)(i), in the matter preceding
subclause (I), by striking ``and (8)'' and inserting ``,
(8), and (9)'';
(C) in paragraph (3)(A), in the matter preceding clause
(i), by striking ``and (8)'' and inserting ``(8), and (9)'';
(D) in paragraph (4)(A)(i), by striking ``paragraph (8)''
and inserting ``paragraphs (8) and (9)''; and
(E) by adding at the end the following new paragraph:
``(9) Treatment of cost-sharing for covered insulin products.--
``(A) No application of deductible.--For plan year 2023 and
subsequent plan years, the deductible under paragraph (1) shall
not apply with respect to any covered insulin product.
``(B) Application of cost-sharing.--
``(i) Plan years 2023 and 2024.--For plan years 2023
and 2024, the coverage provides benefits for any covered
insulin product, regardless of whether an individual has
reached the initial coverage limit under paragraph (3) or
the out-of-pocket threshold under paragraph (4), with cost-
sharing for a month's supply that does not exceed the
applicable copayment amount.
``(ii) Plan year 2025 and subsequent plan years.--For a
plan year beginning on or after January 1, 2025, the
coverage provides benefits for any covered insulin product,
prior to an individual reaching the out-of-pocket threshold
under paragraph (4), with cost-sharing for a month's supply
that does not exceed the applicable copayment amount.
``(C) Covered insulin product.--In this paragraph, the term
`covered insulin product' means an insulin product that is a
covered part D drug covered under the prescription drug plan or
MA-PD plan that is approved under section 505 of the Federal
Food, Drug, and Cosmetic Act or licensed under section 351 of
the Public Health Service Act and marketed pursuant to such
approval or licensure, including any covered insulin product
that has been deemed to be licensed under section 351 of the
Public Health Service Act pursuant to section 7002(e)(4) of the
Biologics Price Competition and Innovation Act of 2009 and
marketed pursuant to such section.
``(D) Applicable copayment amount.--In this paragraph, the
term `applicable copayment amount' means, with respect to a
covered insulin product under a prescription drug plan or an
MA-PD plan dispensed--
``(i) during plan years 2023, 2024, and 2025, $35; and
``(ii) during plan year 2026 and each subsequent plan
year, the lesser of--
``(I) $35;
``(II) an amount equal to 25 percent of the maximum
fair price established for the covered insulin product
in accordance with part E of title XI; or
``(III) an amount equal to 25 percent of the
negotiated price of the covered insulin product under
the prescription drug plan or MA-PD plan.
``(E) Special rule for first 3 months of 2023.--With
respect to a month's supply of a covered insulin product
dispensed during the period beginning on January 1, 2023, and
ending on March 31, 2023, a PDP sponsor offering a prescription
drug plan or an MA organization offering an MA-PD plan shall
reimburse an enrollee within 30 days for any cost-sharing paid
by such enrollee that exceeds the cost-sharing applied by the
prescription drug plan or MA-PD plan under subparagraph (B)(i)
at the point-of-sale for such month's supply.''; and
(2) in subsection (c), by adding at the end the following new
paragraph:
``(6) Treatment of cost-sharing for covered insulin products.--
The coverage is provided in accordance with subsection (b)(9).''.
(b) Conforming Amendments to Cost-sharing for Low-income
Individuals.--Section 1860D-14(a) of the Social Security Act (42 U.S.C.
1395w-114(a)), as amended by sections 11201, 11401, and 11404, is
amended--
(1) in paragraph (1)--
(A) in subparagraph (D)(iii), by adding at the end the
following new sentence: ``For plan year 2023 and subsequent
plan years, the copayment amount applicable under the preceding
sentence to a month's supply of a covered insulin product (as
defined in section 1860D-2(b)(9)(C)) dispensed to the
individual may not exceed the applicable copayment amount for
the product under the prescription drug plan or MA-PD plan in
which the individual is enrolled.''; and
(B) in subparagraph (E), by inserting the following before
the period at the end: ``or under section 1860D-2(b)(9) in the
case of a covered insulin product (as defined in subparagraph
(C) of such section)''; and
(2) in paragraph (2)--
(A) in subparagraph (B), by striking ``section 1860D-
2(b)(8)'' and inserting ``paragraphs (8) and (9) of section
1860D-2(b)'';
(B) in subparagraph (D), by adding at the end the following
new sentence: ``For plan year 2023, the amount of the
coinsurance applicable under the preceding sentence to a
month's supply of a covered insulin product (as defined in
section 1860D-2(b)(9)(C)) dispensed to the individual may not
exceed the applicable copayment amount for the product under
the prescription drug plan or MA-PD plan in which the
individual is enrolled.''; and
(C) in subparagraph (E), by adding at the end the following
new sentence: ``For plan year 2023, the amount of the copayment
or coinsurance applicable under the preceding sentence to a
month's supply of a covered insulin product (as defined in
section 1860D-2(b)(9)(C)) dispensed to the individual may not
exceed the applicable copayment amount for the product under
the prescription drug plan or MA-PD plan in which the
individual is enrolled.''.
(c) Temporary Retrospective Subsidy.--Section 1860D-15(h) of the
Social Security Act (42 U.S.C. 1395w-115(h)), as added by section
11401(c), is amended--
(1) in the subsection heading, by inserting ``and Insulin''
after ``Practices''; and
(2) in paragraph (1), by striking ``section 1860D-2(b)(8)'' and
inserting ``paragraph (8) or (9) of section 1860D-2(b)''.
(d) Implementation for 2023 Through 2025.--The Secretary shall
implement this section for plan years 2023, 2024, and 2025 by program
instruction or other forms of program guidance.
(e) Funding.--In addition to amounts otherwise available, there is
appropriated to the Centers for Medicare & Medicaid Services, out of
any money in the Treasury not otherwise appropriated, $1,500,000 for
fiscal year 2022, to remain available until expended, to carry out the
provisions of, including the amendments made by, this section.
SEC. 11407. LIMITATION ON MONTHLY COINSURANCE AND ADJUSTMENTS TO
SUPPLIER PAYMENT UNDER MEDICARE PART B FOR INSULIN FURNISHED THROUGH
DURABLE MEDICAL EQUIPMENT.
(a) Waiver of Deductible.--The first sentence of section 1833(b) of
the Social Security Act (42 U.S.C. 1395l(b)) is amended--
(1) by striking ``and (12)'' and inserting ``(12)''; and
(2) by inserting before the period the following: ``, and (13)
such deductible shall not apply with respect to insulin furnished
on or after July 1, 2023, through an item of durable medical
equipment covered under section 1861(n).''.
(b) Coinsurance.--
(1) In general.--Section 1833(a)(1)(S) of the Social Security
Act (42 U.S.C. 1395l(a)(1)(S)) is amended--
(A) by inserting ``(i) except as provided in clause (ii),''
after ``(S)''; and
(B) by inserting after ``or 1847B),'' the following: ``and
(ii) with respect to insulin furnished on or after July 1,
2023, through an item of durable medical equipment covered
under section 1861(n), the amounts paid shall be, subject to
the fourth sentence of this subsection, 80 percent of the
payment amount established under section 1847A (or section
1847B, if applicable) for such insulin,''.
(2) Adjustment to supplier payments; limitation on monthly
coinsurance.--Section 1833(a) of the Social Security Act (42 U.S.C.
1395l(a)) is amended, in the flush matter at the end, by adding at
the end the following new sentence: ``The Secretary shall make such
adjustments as may be necessary to the amounts paid as specified
under paragraph (1)(S)(ii) for insulin furnished on or after July
1, 2023, through an item of durable medical equipment covered under
section 1861(n), such that the amount of coinsurance payable by an
individual enrolled under this part for a month's supply of such
insulin does not exceed $35.''.
(c) Implementation.--The Secretary of Health and Human Services
shall implement this section for 2023 by program instruction or other
forms of program guidance.
SEC. 11408. SAFE HARBOR FOR ABSENCE OF DEDUCTIBLE FOR INSULIN.
(a) In General.--Paragraph (2) of section 223(c) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(G) Safe harbor for absence of deductible for certain
insulin products.--
``(i) In general.--A plan shall not fail to be treated
as a high deductible health plan by reason of failing to
have a deductible for selected insulin products.
``(ii) Selected insulin products.--For purposes of this
subparagraph--
``(I) In general.--The term `selected insulin
products' means any dosage form (such as vial, pump, or
inhaler dosage forms) of any different type (such as
rapid-acting, short-acting, intermediate-acting, long-
acting, ultra long-acting, and premixed) of insulin.
``(II) Insulin.--The term `insulin' means insulin
that is licensed under subsection (a) or (k) of section
351 of the Public Health Service Act (42 U.S.C. 262)
and continues to be marketed under such section,
including any insulin product that has been deemed to
be licensed under section 351(a) of such Act pursuant
to section 7002(e)(4) of the Biologics Price
Competition and Innovation Act of 2009 (Public Law 111-
148) and continues to be marketed pursuant to such
licensure.''.
(b) Effective Date.--The amendment made by this section shall apply
to plan years beginning after December 31, 2022.
Subtitle C--Affordable Care Act Subsidies
SEC. 12001. IMPROVE AFFORDABILITY AND REDUCE PREMIUM COSTS OF HEALTH
INSURANCE FOR CONSUMERS.
(a) In General.--Clause (iii) of section 36B(b)(3)(A) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``in 2021 or 2022'' and inserting ``after
December 31, 2020, and before January 1, 2026'', and
(2) by striking ``2021 and 2022'' in the heading and inserting
``2021 through 2025''.
(b) Extension Through 2025 of Rule to Allow Credit to Taxpayers
Whose Household Income Exceeds 400 Percent of the Poverty Line.--
Section 36B(c)(1)(E) of the Internal Revenue Code of 1986 is amended--
(1) by striking ``in 2021 or 2022'' and inserting ``after
December 31, 2020, and before January 1, 2026'', and
(2) by striking ``2021 and 2022'' in the heading and inserting
``2021 through 2025''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
Subtitle D--Energy Security
SEC. 13001. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
PART 1--CLEAN ELECTRICITY AND REDUCING CARBON EMISSIONS
SEC. 13101. EXTENSION AND MODIFICATION OF CREDIT FOR ELECTRICITY
PRODUCED FROM CERTAIN RENEWABLE RESOURCES.
(a) In General.--The following provisions of section 45(d) are each
amended by striking ``January 1, 2022'' each place it appears and
inserting ``January 1, 2025'':
(1) Paragraph (2)(A).
(2) Paragraph (3)(A).
(3) Paragraph (6).
(4) Paragraph (7).
(5) Paragraph (9).
(6) Paragraph (11)(B).
(b) Base Credit Amount.--Section 45 is amended--
(1) in subsection (a)(1), by striking ``1.5 cents'' and
inserting ``0.3 cents'', and
(2) in subsection (b)(2), by striking ``1.5 cent'' and
inserting ``0.3 cent''.
(c) Application of Extension to Geothermal and Solar.--Section
45(d)(4) is amended by striking ``and which'' and all that follows
through ``January 1, 2022'' and inserting ``and the construction of
which begins before January 1, 2025''.
(d) Extension of Election to Treat Qualified Facilities as Energy
Property.--Section 48(a)(5)(C)(ii) is amended by striking ``January 1,
2022'' and inserting ``January 1, 2025''.
(e) Application of Extension to Wind Facilities.--
(1) In general.--Section 45(d)(1) is amended by striking
``January 1, 2022'' and inserting ``January 1, 2025''.
(2) Application of phaseout percentage.--
(A) Renewable electricity production credit.--Section
45(b)(5) is amended by inserting ``which is placed in service
before January 1, 2022'' after ``using wind to produce
electricity''.
(B) Energy credit.--Section 48(a)(5)(E) is amended by
inserting ``placed in service before January 1, 2022, and''
before ``treated as energy property''.
(3) Qualified offshore wind facilities under energy credit.--
Section 48(a)(5)(F)(i) is amended by striking ``offshore wind
facility'' and all that follows and inserting the following:
``offshore wind facility, subparagraph (E) shall not apply.''.
(f) Wage and Apprenticeship Requirements.--Section 45(b) is amended
by adding at the end the following new paragraphs:
``(6) Increased credit amount for qualified facilities.--
``(A) In general.--In the case of any qualified facility
which satisfies the requirements of subparagraph (B), the
amount of the credit determined under subsection (a)
(determined after the application of paragraphs (1) through (5)
and without regard to this paragraph) shall be equal to such
amount multiplied by 5.
``(B) Qualified facility requirements.--A qualified
facility meets the requirements of this subparagraph if it is
one of the following:
``(i) A facility with a maximum net output of less than
1 megawatt (as measured in alternating current).
``(ii) A facility the construction of which begins
prior to the date that is 60 days after the Secretary
publishes guidance with respect to the requirements of
paragraphs (7)(A) and (8).
``(iii) A facility which satisfies the requirements of
paragraphs (7)(A) and (8).
``(7) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified facility are that
the taxpayer shall ensure that any laborers and mechanics
employed by the taxpayer or any contractor or subcontractor
in--
``(i) the construction of such facility, and
``(ii) with respect to any taxable year, for any
portion of such taxable year which is within the period
described in subsection (a)(2)(A)(ii), the alteration or
repair of such facility,
shall be paid wages at rates not less than the prevailing rates
for construction, alteration, or repair of a similar character
in the locality in which such facility is located as most
recently determined by the Secretary of Labor, in accordance
with subchapter IV of chapter 31 of title 40, United States
Code. For purposes of determining an increased credit amount
under paragraph (6)(A) for a taxable year, the requirement
under clause (ii) is applied to such taxable year in which the
alteration or repair of the qualified facility occurs.''
``(B) Correction and penalty related to failure to satisfy
wage requirements.--
``(i) In general.--In the case of any taxpayer which
fails to satisfy the requirement under subparagraph (A)
with respect to the construction of any qualified facility
or with respect to the alteration or repair of a facility
in any year during the period described in subparagraph
(A)(ii), such taxpayer shall be deemed to have satisfied
such requirement under such subparagraph with respect to
such facility for any year if, with respect to any laborer
or mechanic who was paid wages at a rate below the rate
described in such subparagraph for any period during such
year, such taxpayer--
``(I) makes payment to such laborer or mechanic in
an amount equal to the sum of--
``(aa) an amount equal to the difference
between--
``(AA) the amount of wages paid to such
laborer or mechanic during such period, and
``(BB) the amount of wages required to be
paid to such laborer or mechanic pursuant to
such subparagraph during such period, plus
``(bb) interest on the amount determined under
item (aa) at the underpayment rate established
under section 6621 (determined by substituting `6
percentage points' for `3 percentage points' in
subsection (a)(2) of such section) for the period
described in such item, and
``(II) makes payment to the Secretary of a penalty
in an amount equal to the product of--
``(aa) $5,000, multiplied by
``(bb) the total number of laborers and
mechanics who were paid wages at a rate below the
rate described in subparagraph (A) for any period
during such year.
``(ii) Deficiency procedures not to apply.--Subchapter
B of chapter 63 (relating to deficiency procedures for
income, estate, gift, and certain excise taxes) shall not
apply with respect to the assessment or collection of any
penalty imposed by this paragraph.
``(iii) Intentional disregard.--If the Secretary
determines that any failure described in clause (i) is due
to intentional disregard of the requirements under
subparagraph (A), such clause shall be applied--
``(I) in subclause (I), by substituting `three
times the sum' for `the sum', and
``(II) in subclause (II), by substituting `$10,000'
for `5,000' in item (aa) thereof.
``(iv) Limitation on period for payment.--Pursuant to
rules issued by the Secretary, in the case of a final
determination by the Secretary with respect to any failure
by the taxpayer to satisfy the requirement under
subparagraph (A), subparagraph (B)(i) shall not apply
unless the payments described in subclauses (I) and (II) of
such subparagraph are made by the taxpayer on or before the
date which is 180 days after the date of such
determination.
``(8) Apprenticeship requirements.--The requirements described
in this paragraph with respect to the construction of any qualified
facility are as follows:
``(A) Labor hours.--
``(i) Percentage of total labor hours.--Taxpayers shall
ensure that, with respect to the construction of any
qualified facility, not less than the applicable percentage
of the total labor hours of the construction, alteration,
or repair work (including such work performed by any
contractor or subcontractor) with respect to such facility
shall, subject to subparagraph (B), be performed by
qualified apprentices.
``(ii) Applicable percentage.--For purposes of clause
(i), the applicable percentage shall be--
``(I) in the case of a qualified facility the
construction of which begins before January 1, 2023, 10
percent,
``(II) in the case of a qualified facility the
construction of which begins after December 31, 2022,
and before January 1, 2024, 12.5 percent, and
``(III) in the case of a qualified facility the
construction of which begins after December 31, 2023,
15 percent.
``(B) Apprentice to journeyworker ratio.--The requirement
under subparagraph (A)(i) shall be subject to any applicable
requirements for apprentice-to-journeyworker ratios of the
Department of Labor or the applicable State apprenticeship
agency.
``(C) Participation.--Each taxpayer, contractor, or
subcontractor who employs 4 or more individuals to perform
construction, alteration, or repair work with respect to the
construction of a qualified facility shall employ 1 or more
qualified apprentices to perform such work.
``(D) Exception.--
``(i) In general.--A taxpayer shall not be treated as
failing to satisfy the requirements of this paragraph if
such taxpayer--
``(I) satisfies the requirements described in
clause (ii), or
``(II) subject to clause (iii), in the case of any
failure by the taxpayer to satisfy the requirement
under subparagraphs (A) and (C) with respect to the
construction, alteration, or repair work on any
qualified facility to which subclause (I) does not
apply, makes payment to the Secretary of a penalty in
an amount equal to the product of--
``(aa) $50, multiplied by
``(bb) the total labor hours for which the
requirement described in such subparagraph was not
satisfied with respect to the construction,
alteration, or repair work on such qualified
facility.
``(ii) Good faith effort.--For purposes of clause (i),
a taxpayer shall be deemed to have satisfied the
requirements under this paragraph with respect to a
qualified facility if such taxpayer has requested qualified
apprentices from a registered apprenticeship program, as
defined in section 3131(e)(3)(B), and--
``(I) such request has been denied, provided that
such denial is not the result of a refusal by the
taxpayer or any contractors or subcontractors engaged
in the performance of construction, alteration, or
repair work with respect to such qualified facility to
comply with the established standards and requirements
of the registered apprenticeship program, or
``(II) the registered apprenticeship program fails
to respond to such request within 5 business days after
the date on which such registered apprenticeship
program received such request.
``(iii) Intentional disregard.--If the Secretary
determines that any failure described in subclause (i)(II)
is due to intentional disregard of the requirements under
subparagraphs (A) and (C), subclause (i)(II) shall be
applied by substituting `$500' for `$50' in item (aa)
thereof.
``(E) Definitions.--For purposes of this paragraph--
``(i) Labor hours.--The term `labor hours'--
``(I) means the total number of hours devoted to
the performance of construction, alteration, or repair
work by any individual employed by the taxpayer or by
any contractor or subcontractor, and
``(II) excludes any hours worked by--
``(aa) foremen,
``(bb) superintendents,
``(cc) owners, or
``(dd) persons employed in a bona fide
executive, administrative, or professional capacity
(within the meaning of those terms in part 541 of
title 29, Code of Federal Regulations).
``(ii) Qualified apprentice.--The term `qualified
apprentice' means an individual who is employed by the
taxpayer or by any contractor or subcontractor and who is
participating in a registered apprenticeship program, as
defined in section 3131(e)(3)(B).
``(9) Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines necessary
to carry out the purposes of this subsection, including regulations
or other guidance which provides for requirements for recordkeeping
or information reporting for purposes of administering the
requirements of this subsection.''.
(g) Domestic Content, Phaseout, and Energy Communities.--Section
45(b), as amended by subsection (f), is amended--
(1) by redesignating paragraph (9) as paragraph (12), and
(2) by inserting after paragraph (8) the following:
``(9) Domestic content bonus credit amount.--
``(A) In general.--In the case of any qualified facility
which satisfies the requirement under subparagraph (B)(i), the
amount of the credit determined under subsection (a)
(determined after the application of paragraphs (1) through
(8)) shall be increased by an amount equal to 10 percent of the
amount so determined.
``(B) Requirement.--
``(i) In general.--The requirement described in this
clause is satisfied with respect to any qualified facility
if the taxpayer certifies to the Secretary (at such time,
and in such form and manner, as the Secretary may
prescribe) that any steel, iron, or manufactured product
which is a component of such facility (upon completion of
construction) was produced in the United States (as
determined under section 661 of title 49, Code of Federal
Regulations).
``(ii) Steel and iron.--In the case of steel or iron,
clause (i) shall be applied in a manner consistent with
section 661.5 of title 49, Code of Federal Regulations.
``(iii) Manufactured product.--For purposes of clause
(i), the manufactured products which are components of a
qualified facility upon completion of construction shall be
deemed to have been produced in the United States if not
less than the adjusted percentage (as determined under
subparagraph (C)) of the total costs of all such
manufactured products of such facility are attributable to
manufactured products (including components) which are
mined, produced, or manufactured in the United States.
``(C) Adjusted percentage.--
``(i) In general.--Subject to subclause (ii), for
purposes of subparagraph (B)(iii), the adjusted percentage
shall be 40 percent.
``(ii) Offshore wind facility.--For purposes of
subparagraph (B)(iii), in the case of a qualified facility
which is an offshore wind facility, the adjusted percentage
shall be 20 percent.
``(10) Phaseout for elective payment.--
``(A) In general.--In the case of a taxpayer making an
election under section 6417 with respect to a credit under this
section, the amount of such credit shall be replaced with--
``(i) the value of such credit (determined without
regard to this paragraph), multiplied by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
qualified facilities.--In the case of any qualified facility--
``(i) which satisfies the requirements under paragraph
(9)(B), or
``(ii) with a maximum net output of less than 1
megawatt (as measured in alternating current),
the applicable percentage shall be 100 percent.
``(C) Phased domestic content requirement.--Subject to
subparagraph (D), in the case of any qualified facility which
is not described in subparagraph (B), the applicable percentage
shall be--
``(i) if construction of such facility began before
January 1, 2024, 100 percent, and
``(ii) if construction of such facility began in
calendar year 2024, 90 percent.
``(D) Exception.--
``(i) In general.--For purposes of this paragraph, the
Secretary shall provide exceptions to the requirements
under this paragraph if--
``(I) the inclusion of steel, iron, or manufactured
products which are produced in the United States
increases the overall costs of construction of
qualified facilities by more than 25 percent, or
``(II) relevant steel, iron, or manufactured
products are not produced in the United States in
sufficient and reasonably available quantities or of a
satisfactory quality.
``(ii) Applicable percentage.--In any case in which the
Secretary provides an exception pursuant to clause (i), the
applicable percentage shall be 100 percent.
``(11) Special rule for qualified facility located in energy
community.--
``(A) In general.--In the case of a qualified facility
which is located in an energy community, the credit determined
under subsection (a) (determined after the application of
paragraphs (1) through (10), without the application of
paragraph (9)) shall be increased by an amount equal to 10
percent of the amount so determined.
``(B) Energy community.--For purposes of this paragraph,
the term `energy community' means--
``(i) a brownfield site (as defined in subparagraphs
(A), (B), and (D)(ii)(III) of section 101(39) of the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601(39))),
``(ii) a metropolitan statistical area or non-
metropolitan statistical area which--
``(I) has (or, at any time during the period
beginning after December 31, 2009, had) 0.17 percent or
greater direct employment or 25 percent or greater
local tax revenues related to the extraction,
processing, transport, or storage of coal, oil, or
natural gas (as determined by the Secretary), and
``(II) has an unemployment rate at or above the
national average unemployment rate for the previous
year (as determined by the Secretary), or
``(iii) a census tract--
``(I) in which--
``(aa) after December 31, 1999, a coal mine has
closed, or
``(bb) after December 31, 2009, a coal-fired
electric generating unit has been retired, or
``(II) which is directly adjoining to any census
tract described in subclause (I).''.
(h) Credit Reduced for Tax-exempt Bonds.--Section 45(b)(3) is
amended to read as follows:
``(3) Credit reduced for tax-exempt bonds.--The amount of the
credit determined under subsection (a) with respect to any facility
for any taxable year (determined after the application of
paragraphs (1) and (2)) shall be reduced by the amount which is the
product of the amount so determined for such year and the lesser of
15 percent or a fraction--
``(A) the numerator of which is the sum, for the taxable
year and all prior taxable years, of proceeds of an issue of
any obligations the interest on which is exempt from tax under
section 103 and which is used to provide financing for the
qualified facility, and
``(B) the denominator of which is the aggregate amount of
additions to the capital account for the qualified facility for
the taxable year and all prior taxable years.
The amounts under the preceding sentence for any taxable year shall
be determined as of the close of the taxable year.''.
(i) Rounding Adjustment.--
(1) In general.--Section 45(b)(2) is amended by striking the
second sentence and inserting the following: ``If the 0.3 cent
amount as increased under the preceding sentence is not a multiple
of 0.05 cent, such amount shall be rounded to the nearest multiple
of 0.05 cent. In any other case, if an amount as increased under
this paragraph is not a multiple of 0.1 cent, such amount shall be
rounded to the nearest multiple of 0.1 cent.''.
(2) Conforming amendment.--Section 45(b)(4)(A) is amended by
striking ``last sentence'' and inserting ``last two sentences''.
(j) Hydropower.--
(1) Elimination of credit rate reduction for qualified
hydroelectric production and marine and hydrokinetic renewable
energy.--Section 45(b)(4)(A), as amended by the preceding
provisions of this section, is amended by striking ``(7), (9), or
(11)'' and inserting ``or (7)''.
(2) Marine and hydrokinetic renewable energy.--Section 45 is
amended--
(A) in subsection (c)(10)(A)--
(i) in clause (iii), by striking ``or'',
(ii) in clause (iv), by striking the period at the end
and inserting ``, or'' and
(iii) by adding at the end the following:
``(v) pressurized water used in a pipeline (or similar
man-made water conveyance) which is operated--
``(I) for the distribution of water for
agricultural, municipal, or industrial consumption, and
``(II) not primarily for the generation of
electricity.'', and
(B) in subsection (d)(11)(A), by striking ``150'' and
inserting ``25''.
(k) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and (3),
the amendments made by this section shall apply to facilities
placed in service after December 31, 2021.
(2) Credit reduced for tax-exempt bonds.--The amendment made by
subsection (h) shall apply to facilities the construction of which
begins after the date of enactment of this Act.
(3) Domestic content, phaseout, energy communities, and
hydropower.--The amendments made by subsections (g) and (j) shall
apply to facilities placed in service after December 31, 2022.
SEC. 13102. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--The following provisions of section 48
are each amended by striking ``January 1, 2024'' each place it appears
and inserting ``January 1, 2025'':
(1) Subsection (a)(2)(A)(i)(II).
(2) Subsection (a)(3)(A)(ii).
(3) Subsection (c)(1)(D).
(4) Subsection (c)(2)(D).
(5) Subsection (c)(3)(A)(iv).
(6) Subsection (c)(4)(C).
(7) Subsection (c)(5)(D).
(b) Further Extension for Certain Energy Property.--Section
48(a)(3)(A)(vii) is amended by striking ``January 1, 2024'' and
inserting ``January 1, 2035''.
(c) Phaseout of Credit.--Section 48(a) is amended by striking
paragraphs (6) and (7) and inserting the following new paragraph:
``(6) Phaseout for certain energy property.--In the case of any
qualified fuel cell property, qualified small wind property, or
energy property described in clause (i) or clause (ii) of paragraph
(3)(A) the construction of which begins after December 31, 2019,
and which is placed in service before January 1, 2022, the energy
percentage determined under paragraph (2) shall be equal to 26
percent.''.
(d) Base Energy Percentage Amount; Phaseout of Certain Energy
Property.--
(1) Base energy percentage amount.--Section 48(a) is amended--
(A) in paragraph (2)(A)--
(i) in clause (i), by striking ``30 percent'' and
inserting ``6 percent'', and
(ii) in clause (ii), by striking ``10 percent'' and
inserting ``2 percent'', and
(B) in paragraph (5)(A)(ii), by striking ``30 percent'' and
inserting ``6 percent''.
(2) Phaseout of certain energy property.--Section 48(a), as
amended by the preceding provisions of this Act, is amended by
adding at the end the following new paragraph:
``(7) Phaseout for certain energy property.--In the case of any
energy property described in clause (vii) of paragraph (3)(A), the
energy percentage determined under paragraph (2) shall be equal
to--
``(A) in the case of any property the construction of which
begins before January 1, 2033, and which is placed in service
after December 31, 2021, 6 percent,
``(B) in the case of any property the construction of which
begins after December 31, 2032, and before January 1, 2034, 5.2
percent, and
``(C) in the case of any property the construction of which
begins after December 31, 2033, and before January 1, 2035, 4.4
percent.''.
(e) 6 Percent Credit for Geothermal.--Section 48(a)(2)(A)(i)(II) is
amended by striking ``paragraph (3)(A)(i)'' and inserting ``clause (i)
or (iii) of paragraph (3)(A)''.
(f) Energy Storage Technologies; Qualified Biogas Property;
Microgrid Controllers; Extension of Other Property.--
(1) In general.--Section 48(a)(3)(A) is amended by striking
``or'' at the end of clause (vii), and by adding at the end the
following new clauses:
``(ix) energy storage technology,
``(x) qualified biogas property, or
``(xi) microgrid controllers,''.
(2) Application of 6 percent credit.--Section 48(a)(2)(A)(i) is
amended by striking ``and'' at the end of subclauses (IV) and (V)
and adding at the end the following new subclauses:
``(VI) energy storage technology,
``(VII) qualified biogas property,
``(VIII) microgrid controllers, and
``(IX) energy property described in clauses (v) and
(vii) of paragraph (3)(A), and''.
(3) Definitions.--Section 48(c) is amended by adding at the end
the following new paragraphs:
``(6) Energy storage technology.--
``(A) In general.--The term `energy storage technology'
means--
``(i) property (other than property primarily used in
the transportation of goods or individuals and not for the
production of electricity) which receives, stores, and
delivers energy for conversion to electricity (or, in the
case of hydrogen, which stores energy), and has a nameplate
capacity of not less than 5 kilowatt hours, and
``(ii) thermal energy storage property.
``(B) Modifications of certain property.--In the case of
any property which either--
``(i) was placed in service before the date of
enactment of this section and would be described in
subparagraph (A)(i), except that such property has a
capacity of less than 5 kilowatt hours and is modified in a
manner that such property (after such modification) has a
nameplate capacity of not less than 5 kilowatt hours, or
``(ii) is described in subparagraph (A)(i) and is
modified in a manner that such property (after such
modification) has an increase in nameplate capacity of not
less than 5 kilowatt hours,
such property shall be treated as described in subparagraph
(A)(i) except that the basis of any existing property prior to
such modification shall not be taken into account for purposes
of this section. In the case of any property to which this
subparagraph applies, subparagraph (D) shall be applied by
substituting `modification' for `construction'.
``(C) Thermal energy storage property.--
``(i) In general.--Subject to clause (ii), for purposes
of this paragraph, the term `thermal energy storage
property' means property comprising a system which--
``(I) is directly connected to a heating,
ventilation, or air conditioning system,
``(II) removes heat from, or adds heat to, a
storage medium for subsequent use, and
``(III) provides energy for the heating or cooling
of the interior of a residential or commercial
building.
``(ii) Exclusion.--The term `thermal energy storage
property' shall not include--
``(I) a swimming pool,
``(II) combined heat and power system property, or
``(III) a building or its structural components.
``(D) Termination.--The term `energy storage technology'
shall not include any property the construction of which begins
after December 31, 2024.
``(7) Qualified biogas property.--
``(A) In general.--The term `qualified biogas property'
means property comprising a system which--
``(i) converts biomass (as defined in section
45K(c)(3), as in effect on the date of enactment of this
paragraph) into a gas which--
``(I) consists of not less than 52 percent methane
by volume, or
``(II) is concentrated by such system into a gas
which consists of not less than 52 percent methane, and
``(ii) captures such gas for sale or productive use,
and not for disposal via combustion.
``(B) Inclusion of cleaning and conditioning property.--The
term `qualified biogas property' includes any property which is
part of such system which cleans or conditions such gas.
``(C) Termination.--The term `qualified biogas property'
shall not include any property the construction of which begins
after December 31, 2024.
``(8) Microgrid controller.--
``(A) In general.--The term `microgrid controller' means
equipment which is--
``(i) part of a qualified microgrid, and
``(ii) designed and used to monitor and control the
energy resources and loads on such microgrid.
``(B) Qualified microgrid.--The term `qualified microgrid'
means an electrical system which--
``(i) includes equipment which is capable of generating
not less than 4 kilowatts and not greater than 20 megawatts
of electricity,
``(ii) is capable of operating--
``(I) in connection with the electrical grid and as
a single controllable entity with respect to such grid,
and
``(II) independently (and disconnected) from such
grid, and
``(iii) is not part of a bulk-power system (as defined
in section 215 of the Federal Power Act (16 U.S.C. 824o)).
``(C) Termination.--The term `microgrid controller' shall
not include any property the construction of which begins after
December 31, 2024.''.
(4) Denial of double benefit for qualified biogas property.--
Section 45(e) is amended by adding at the end the following new
paragraph:
``(12) Coordination with energy credit for qualified biogas
property.--The term `qualified facility' shall not include any
facility which produces electricity from gas produced by qualified
biogas property (as defined in section 48(c)(7)) if a credit is
allowed under section 48 with respect to such property for the
taxable year or any prior taxable year.''.
(5) Public utility property.--Paragraph (2) of section 50(d) is
amended--
(A) by adding after the first sentence the following new
sentence: ``At the election of a taxpayer, this paragraph shall
not apply to any energy storage technology (as defined in
section 48(c)(6)), provided--'', and
(B) by adding the following new subparagraphs:
``(A) no election under this paragraph shall be permitted
if the making of such election is prohibited by a State or
political subdivision thereof, by any agency or instrumentality
of the United States, or by a public service or public utility
commission or other similar body of any State or political
subdivision that regulates public utilities as described in
section 7701(a)(33)(A),
``(B) an election under this paragraph shall be made
separately with respect to each energy storage technology by
the due date (including extensions) of the Federal tax return
for the taxable year in which the energy storage technology is
placed in service by the taxpayer, and once made, may be
revoked only with the consent of the Secretary, and
``(C) an election shall not apply with respect to any
energy storage technology if such energy storage technology has
a maximum capacity equal to or less than 500 kilowatt hours.''.
(g) Fuel Cells Using Electromechanical Processes.--
(1) In general.--Section 48(c)(1) is amended--
(A) in subparagraph (A)(i)--
(i) by inserting ``or electromechanical'' after
``electrochemical'', and
(ii) by inserting ``(1 kilowatt in the case of a fuel
cell power plant with a linear generator assembly)'' after
``0.5 kilowatt'', and
(B) in subparagraph (C)--
(i) by inserting ``, or linear generator assembly,''
after ``a fuel cell stack assembly'', and
(ii) by inserting ``or electromechanical'' after
``electrochemical''.
(2) Linear generator assembly limitation.--Section 48(c)(1) is
amended by redesignating subparagraph (D) as subparagraph (E) and
by inserting after subparagraph (C) the following new subparagraph:
``(D) Linear generator assembly.--The term `linear
generator assembly' does not include any assembly which
contains rotating parts.''.
(h) Dynamic Glass.--Section 48(a)(3)(A)(ii) is amended by inserting
``, or electrochromic glass which uses electricity to change its light
transmittance properties in order to heat or cool a structure,'' after
``sunlight''.
(i) Coordination With Low Income Housing Tax Credit.--Paragraph (3)
of section 50(c) is amended--
(1) by striking ``and'' at the end of subparagraph (A),
(2) by striking the period at the end of subparagraph (B) and
inserting ``, and'', and
(3) by adding at the end the following new subparagraph:
``(C) paragraph (1) shall not apply for purposes of
determining eligible basis under section 42.''.
(j) Interconnection Property.--Section 48(a), as amended by the
preceding provisions of this Act, is amended by adding at the end the
following new paragraph:
``(8) Interconnection property.--
``(A) In general.--For purposes of determining the credit
under subsection (a), energy property shall include amounts
paid or incurred by the taxpayer for qualified interconnection
property in connection with the installation of energy property
(as defined in paragraph (3)) which has a maximum net output of
not greater than 5 megawatts (as measured in alternating
current), to provide for the transmission or distribution of
the electricity produced or stored by such property, and which
are properly chargeable to the capital account of the taxpayer.
``(B) Qualified interconnection property.--The term
`qualified interconnection property' means, with respect to an
energy project which is not a microgrid controller, any
tangible property--
``(i) which is part of an addition, modification, or
upgrade to a transmission or distribution system which is
required at or beyond the point at which the energy project
interconnects to such transmission or distribution system
in order to accommodate such interconnection,
``(ii) either--
``(I) which is constructed, reconstructed, or
erected by the taxpayer, or
``(II) for which the cost with respect to the
construction, reconstruction, or erection of such
property is paid or incurred by such taxpayer, and
``(iii) the original use of which, pursuant to an
interconnection agreement, commences with a utility.
``(C) Interconnection agreement.--The term `interconnection
agreement' means an agreement with a utility for the purposes
of interconnecting the energy property owned by such taxpayer
to the transmission or distribution system of such utility.
``(D) Utility.--For purposes of this paragraph, the term
`utility' means the owner or operator of an electrical
transmission or distribution system which is subject to the
regulatory authority of a State or political subdivision
thereof, any agency or instrumentality of the United States, a
public service or public utility commission or other similar
body of any State or political subdivision thereof, or the
governing or ratemaking body of an electric cooperative.
``(E) Special rule for interconnection property.--In the
case of expenses paid or incurred for interconnection property,
amounts otherwise chargeable to capital account with respect to
such expenses shall be reduced under rules similar to the rules
of section 50(c).''.
(k) Energy Projects, Wage Requirements, and Apprenticeship
Requirements.--Section 48(a), as amended by the preceding provisions of
this Act, is amended by adding at the end the following new paragraphs:
``(9) Increased credit amount for energy projects.--
``(A) In general.--
``(i) Rule.--In the case of any energy project which
satisfies the requirements of subparagraph (B), the amount
of the credit determined under this subsection (determined
after the application of paragraphs (1) through (8) and
without regard to this clause) shall be equal to such
amount multiplied by 5.
``(ii) Energy project defined.--For purposes of this
subsection, the term `energy project' means a project
consisting of one or more energy properties that are part
of a single project.
``(B) Project requirements.--A project meets the
requirements of this subparagraph if it is one of the
following:
``(i) A project with a maximum net output of less than
1 megawatt of electrical (as measured in alternating
current) or thermal energy.
``(ii) A project the construction of which begins
before the date that is 60 days after the Secretary
publishes guidance with respect to the requirements of
paragraphs (10)(A) and (11).
``(iii) A project which satisfies the requirements of
paragraphs (10)(A) and (11).
``(10) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any energy project are that the
taxpayer shall ensure that any laborers and mechanics employed
by the taxpayer or any contractor or subcontractor in--
``(i) the construction of such energy project, and
``(ii) for the 5-year period beginning on the date such
project is originally placed in service, the alteration or
repair of such project,
shall be paid wages at rates not less than the prevailing rates
for construction, alteration, or repair of a similar character
in the locality in which such project is located as most
recently determined by the Secretary of Labor, in accordance
with subchapter IV of chapter 31 of title 40, United States
Code. Subject to subparagraph (C), for purposes of any
determination under paragraph (9)(A)(i) for the taxable year in
which the energy project is placed in service, the taxpayer
shall be deemed to satisfy the requirement under clause (ii) at
the time such project is placed in service.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(C) Recapture.--The Secretary shall, by regulations or
other guidance, provide for recapturing the benefit of any
increase in the credit allowed under this subsection by reason
of this paragraph with respect to any project which does not
satisfy the requirements under subparagraph (A) (after
application of subparagraph (B)) for the period described in
clause (ii) of subparagraph (A) (but which does not cease to be
investment credit property within the meaning of section
50(a)). The period and percentage of such recapture shall be
determined under rules similar to the rules of section 50(a).
``(11) Apprenticeship requirements.--Rules similar to the rules
of section 45(b)(8) shall apply.''.
(l) Domestic Content; Phaseout for Elective Payment.--Section
48(a), as amended by the preceding provisions of this Act, is amended
by adding at the end the following new paragraphs:
``(12) Domestic content bonus credit amount.--
``(A) In general.--In the case of any energy project which
satisfies the requirement under subparagraph (B), for purposes
of applying paragraph (2) with respect to such property, the
energy percentage shall be increased by the applicable credit
rate increase.
``(B) Requirement.--Rules similar to the rules of section
45(b)(9)(B) shall apply.
``(C) Applicable credit rate increase.--For purposes of
subparagraph (A), the applicable credit rate increase shall
be--
``(i) in the case of an energy project which does not
satisfy the requirements of paragraph (9)(B), 2 percentage
points, and
``(ii) in the case of an energy project which satisfies
the requirements of paragraph (9)(B), 10 percentage points.
``(13) Phaseout for elective payment.--In the case of a
taxpayer making an election under section 6417 with respect to a
credit under this section, rules similar to the rules of section
45(b)(10) shall apply.''.
(m) Special Rule for Property Financed by Tax-exempt Bonds.--
Section 48(a)(4) is amended to read as follows:
``(4) Special rule for property financed by tax-exempt bonds.--
Rules similar to the rule under section 45(b)(3) shall apply for
purposes of this section.''.
(n) Treatment of Certain Contracts Involving Energy Storage.--
Section 7701(e) is amended--
(1) in paragraph (3)--
(A) in subparagraph (A)(i), by striking ``or'' at the end
of subclause (II), by striking ``and'' at the end of subclause
(III) and inserting ``or'', and by adding at the end the
following new subclause:
``(IV) the operation of a storage facility, and'',
and
(B) by adding at the end the following new subparagraph:
``(F) Storage facility.--For purposes of subparagraph (A),
the term `storage facility' means a facility which uses energy
storage technology within the meaning of section 48(c)(6).'',
and
(2) in paragraph (4), by striking ``or water treatment works
facility'' and inserting ``water treatment works facility, or
storage facility''.
(o) Increase in Credit Rate for Energy Communities.--Section 48(a),
as amended by the preceding provisions of this Act, is amended by
adding at the end the following new paragraph:
``(14) Increase in credit rate for energy communities.--
``(A) In general.--In the case of any energy project that
is placed in service within an energy community (as defined in
section 45(b)(11)(B), as applied by substituting `energy
project' for `qualified facility' each place it appears), for
purposes of applying paragraph (2) with respect to energy
property which is part of such project, the energy percentage
shall be increased by the applicable credit rate increase.
``(B) Applicable credit rate increase.--For purposes of
subparagraph (A), the applicable credit rate increase shall be
equal to--
``(i) in the case of any energy project which does not
satisfy the requirements of paragraph (9)(B), 2 percentage
points, and
``(ii) in the case of any energy project which
satisfies the requirements of paragraph (9)(B), 10
percentage points.''.
(p) Regulations.--Section 48(a), as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new paragraph:
``(15) Regulations and guidance.--The Secretary shall issue
such regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this subsection, including
regulations or other guidance which provides for requirements for
recordkeeping or information reporting for purposes of
administering the requirements of this subsection.''.
(q) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2) and (3),
the amendments made by this section shall apply to property placed
in service after December 31, 2021.
(2) Other property.--The amendments made by subsections (f),
(g), (h), (i), (j), (l), (n), and (o) shall apply to property
placed in service after December 31, 2022.
(3) Special rule for property financed by tax-exempt bonds.--
The amendments made by subsection (m) shall apply to property the
construction of which begins after the date of enactment of this
Act.
SEC. 13103. INCREASE IN ENERGY CREDIT FOR SOLAR AND WIND FACILITIES
PLACED IN SERVICE IN CONNECTION WITH LOW-INCOME COMMUNITIES.
(a) In General.--Section 48 is amended by adding at the end the
following new subsection:
``(e) Special Rules for Certain Solar and Wind Facilities Placed in
Service in Connection With Low-income Communities.--
``(1) In general.--In the case of any qualified solar and wind
facility with respect to which the Secretary makes an allocation of
environmental justice solar and wind capacity limitation under
paragraph (4)--
``(A) the energy percentage otherwise determined under
paragraph (2) or (5) of subsection (a) with respect to any
eligible property which is part of such facility shall be
increased by--
``(i) in the case of a facility described in subclause
(I) of paragraph (2)(A)(iii) and not described in subclause
(II) of such paragraph, 10 percentage points, and
``(ii) in the case of a facility described in subclause
(II) of paragraph (2)(A)(iii), 20 percentage points, and
``(B) the increase in the credit determined under
subsection (a) by reason of this subsection for any taxable
year with respect to all property which is part of such
facility shall not exceed the amount which bears the same ratio
to the amount of such increase (determined without regard to
this subparagraph) as--
``(i) the environmental justice solar and wind capacity
limitation allocated to such facility, bears to
``(ii) the total megawatt nameplate capacity of such
facility, as measured in direct current.
``(2) Qualified solar and wind facility.--For purposes of this
subsection--
``(A) In general.--The term `qualified solar and wind
facility' means any facility--
``(i) which generates electricity solely from property
described in section 45(d)(1) or in clause (i) or (vi) of
subsection (a)(3)(A),
``(ii) which has a maximum net output of less than 5
megawatts (as measured in alternating current), and
``(iii) which--
``(I) is located in a low-income community (as
defined in section 45D(e)) or on Indian land (as
defined in section 2601(2) of the Energy Policy Act of
1992 (25 U.S.C. 3501(2))), or
``(II) is part of a qualified low-income
residential building project or a qualified low-income
economic benefit project.
``(B) Qualified low-income residential building project.--A
facility shall be treated as part of a qualified low-income
residential building project if--
``(i) such facility is installed on a residential
rental building which participates in a covered housing
program (as defined in section 41411(a) of the Violence
Against Women Act of 1994 (34 U.S.C. 12491(a)(3)), a
housing assistance program administered by the Department
of Agriculture under title V of the Housing Act of 1949, a
housing program administered by a tribally designated
housing entity (as defined in section 4(22) of the Native
American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4103(22))) or such other affordable housing
programs as the Secretary may provide, and
``(ii) the financial benefits of the electricity
produced by such facility are allocated equitably among the
occupants of the dwelling units of such building.
``(C) Qualified low-income economic benefit project.--A
facility shall be treated as part of a qualified low-income
economic benefit project if at least 50 percent of the
financial benefits of the electricity produced by such facility
are provided to households with income of--
``(i) less than 200 percent of the poverty line (as
defined in section 36B(d)(3)(A)) applicable to a family of
the size involved, or
``(ii) less than 80 percent of area median gross income
(as determined under section 142(d)(2)(B)).
``(D) Financial benefit.--For purposes of subparagraphs (B)
and (C), electricity acquired at a below-market rate shall not
fail to be taken into account as a financial benefit.
``(3) Eligible property.--For purposes of this section, the
term `eligible property' means energy property which--
``(A) is part of a facility described in section 45(d)(1)
for which an election was made under subsection (a)(5), or
``(B) is described in clause (i) or (vi) of subsection
(a)(3)(A),
including energy storage technology (as described in subsection
(a)(3)(A)(ix)) installed in connection with such energy property.
``(4) Allocations.--
``(A) In general.--Not later than 180 days after the date
of enactment of this subsection, the Secretary shall establish
a program to allocate amounts of environmental justice solar
and wind capacity limitation to qualified solar and wind
facilities. In establishing such program and to carry out the
purposes of this subsection, the Secretary shall provide
procedures to allow for an efficient allocation process,
including, when determined appropriate, consideration of
multiple projects in a single application if such projects will
be placed in service by a single taxpayer.
``(B) Limitation.--The amount of environmental justice
solar and wind capacity limitation allocated by the Secretary
under subparagraph (A) during any calendar year shall not
exceed the annual capacity limitation with respect to such
year.
``(C) Annual capacity limitation.--For purposes of this
paragraph, the term `annual capacity limitation' means 1.8
gigawatts of direct current capacity for each of calendar years
2023 and 2024, and zero thereafter.
``(D) Carryover of unused limitation.--If the annual
capacity limitation for any calendar year exceeds the aggregate
amount allocated for such year under this paragraph, such
limitation for the succeeding calendar year shall be increased
by the amount of such excess. No amount may be carried under
the preceding sentence to any calendar year after 2024 except
as provided in section 48E(h)(4)(D)(ii).
``(E) Placed in service deadline.--
``(i) In general.--Paragraph (1) shall not apply with
respect to any property which is placed in service after
the date that is 4 years after the date of the allocation
with respect to the facility of which such property is a
part.
``(ii) Application of carryover.--Any amount of
environmental justice solar and wind capacity limitation
which expires under clause (i) during any calendar year
shall be taken into account as an excess described in
subparagraph (D) (or as an increase in such excess) for
such calendar year, subject to the limitation imposed by
the last sentence of such subparagraph.
``(5) Recapture.--The Secretary shall, by regulations or other
guidance, provide for recapturing the benefit of any increase in
the credit allowed under subsection (a) by reason of this
subsection with respect to any property which ceases to be property
eligible for such increase (but which does not cease to be
investment credit property within the meaning of section 50(a)).
The period and percentage of such recapture shall be determined
under rules similar to the rules of section 50(a). To the extent
provided by the Secretary, such recapture may not apply with
respect to any property if, within 12 months after the date the
taxpayer becomes aware (or reasonably should have become aware) of
such property ceasing to be property eligible for such increase,
the eligibility of such property for such increase is restored. The
preceding sentence shall not apply more than once with respect to
any facility.''.
(b) Effective Date.--The amendments made by this section shall take
effect on January 1, 2023.
SEC. 13104. EXTENSION AND MODIFICATION OF CREDIT FOR CARBON OXIDE
SEQUESTRATION.
(a) Modification of Carbon Oxide Capture Requirements.--
(1) In general.--Section 45Q(d) is amended to read as follows:
``(d) Qualified Facility.--For purposes of this section, the term
`qualified facility' means any industrial facility or direct air
capture facility--
``(1) the construction of which begins before January 1, 2033,
and either--
``(A) construction of carbon capture equipment begins
before such date, or
``(B) the original planning and design for such facility
includes installation of carbon capture equipment, and
``(2) which--
``(A) in the case of a direct air capture facility,
captures not less than 1,000 metric tons of qualified carbon
oxide during the taxable year,
``(B) in the case of an electricity generating facility--
``(i) captures not less than 18,750 metric tons of
qualified carbon oxide during the taxable year, and
``(ii) with respect to any carbon capture equipment for
the applicable electric generating unit at such facility,
has a capture design capacity of not less than 75 percent
of the baseline carbon oxide production of such unit, or
``(C) in the case of any other facility, captures not less
than 12,500 metric tons of qualified carbon oxide during the
taxable year.''.
(2) Definitions.--
(A) In general.--Section 45Q(e) is amended--
(i) by redesignating paragraphs (1) through (3) as
paragraphs (3) through (5), respectively, and
(ii) by inserting after ``For purposes of this
section--'' the following new paragraphs:
``(1) Applicable electric generating unit.--The term
`applicable electric generating unit' means the principal electric
generating unit for which the carbon capture equipment is
originally planned and designed.
``(2) Baseline carbon oxide production.--
``(A) In general.--The term `baseline carbon oxide
production' means either of the following:
``(i) In the case of an applicable electric generating
unit which was originally placed in service more than 1
year prior to the date on which construction of the carbon
capture equipment begins, the average annual carbon oxide
production, by mass, from such unit during--
``(I) in the case of an applicable electric
generating unit which was originally placed in service
more than 1 year prior to the date on which
construction of the carbon capture equipment begins and
on or after the date which is 3 years prior to the date
on which construction of such equipment begins, the
period beginning on the date such unit was placed in
service and ending on the date on which construction of
such equipment began, and
``(II) in the case of an applicable electric
generating unit which was originally placed in service
more than 3 years prior to the date on which
construction of the carbon capture equipment begins,
the 3 years with the highest annual carbon oxide
production during the 12-year period preceding the date
on which construction of such equipment began.
``(ii) In the case of an applicable electric generating
unit which--
``(I) as of the date on which construction of the
carbon capture equipment begins, is not yet placed in
service, or
``(II) was placed in service during the 1-year
period prior to the date on which construction of the
carbon capture equipment begins,
the designed annual carbon oxide production, by mass, as
determined based on an assumed capacity factor of 60
percent.
``(B) Capacity factor.--The term `capacity factor' means
the ratio (expressed as a percentage) of the actual electric
output from the applicable electric generating unit to the
potential electric output from such unit.''.
(B) Conforming amendment.--Section 142(o)(1)(B) is amended
by striking ``section 45Q(e)(1)'' and inserting ``section
45Q(e)(3)''.
(b) Modified Applicable Dollar Amount.--Section 45Q(b)(1)(A) is
amended--
(1) in clause (i)--
(A) in subclause (I), by striking ``the dollar amount'' and
all that follows through ``such period'' and inserting ``$17'',
and
(B) in subclause (II), by striking ``the dollar amount''
and all that follows through ``such period'' and inserting
``$12'', and
(2) in clause (ii)--
(A) in subclause (I), by striking ``$50'' and inserting
``$17'', and
(B) in subclause (II), by striking ``$35'' and inserting
``$12''.
(c) Determination of Applicable Dollar Amount.--
(1) In general.--Section 45Q(b)(1), as amended by the preceding
provisions of this Act, is amended--
(A) by redesignating subparagraph (B) as subparagraph (D),
and
(B) by inserting after subparagraph (A) the following new
subparagraphs:
``(B) Special rule for direct air capture facilities.--In
the case of any qualified facility described in subsection
(d)(2)(A) which is placed in service after December 31, 2022,
the applicable dollar amount shall be an amount equal to the
applicable dollar amount otherwise determined with respect to
such qualified facility under subparagraph (A), except that
such subparagraph shall be applied--
``(i) by substituting `$36' for `$17' each place it
appears, and
``(ii) by substituting `$26' for `$12' each place it
appears.
``(C) Applicable dollar amount for additional carbon
capture equipment.--In the case of any qualified facility which
is placed in service before January 1, 2023, if any additional
carbon capture equipment is installed at such facility and such
equipment is placed in service after December 31, 2022, the
applicable dollar amount shall be an amount equal to the
applicable dollar amount otherwise determined under this
paragraph, except that subparagraph (B) shall be applied--
``(i) by substituting `before January 1, 2023' for
`after December 31, 2022', and
``(ii) by substituting `the additional carbon capture
equipment installed at such qualified facility' for `such
qualified facility'.''.
(2) Conforming amendments.--
(A) Section 45Q(b)(1)(A) is amended by striking ``The
applicable dollar amount'' and inserting ``Except as provided
in subparagraph (B) or (C), the applicable dollar amount''.
(B) Section 45Q(b)(1)(D), as redesignated by paragraph
(1)(A), is amended by striking ``subparagraph (A)'' and
inserting ``subparagraph (A), (B), or (C)''.
(d) Wage and Apprenticeship Requirements.--Section 45Q is amended
by redesignating subsection (h) as subsection (i) and inserting after
subsection (g) following new subsection:
``(h) Increased Credit Amount for Qualified Facilities and Carbon
Capture Equipment.--
``(1) In general.--In the case of any qualified facility or any
carbon capture equipment which satisfy the requirements of
paragraph (2), the amount of the credit determined under subsection
(a) shall be equal to such amount (determined without regard to
this sentence) multiplied by 5.
``(2) Requirements.--The requirements described in this
paragraph are that--
``(A) with respect to any qualified facility the
construction of which begins on or after the date that is 60
days after the Secretary publishes guidance with respect to the
requirements of paragraphs (3)(A) and (4), as well as any
carbon capture equipment placed in service at such facility--
``(i) subject to subparagraph (B) of paragraph (3), the
taxpayer satisfies the requirements under subparagraph (A)
of such paragraph with respect to such facility and
equipment, and
``(ii) the taxpayer satisfies the requirements under
paragraph (4) with respect to the construction of such
facility and equipment,
``(B) with respect to any carbon capture equipment the
construction of which begins on or after the date that is 60
days after the Secretary publishes guidance with respect to the
requirements of paragraphs (3)(A) and (4), and which is
installed at a qualified facility the construction of which
began prior to such date--
``(i) subject to subparagraph (B) of paragraph (3), the
taxpayer satisfies the requirements under subparagraph (A)
of such paragraph with respect to such equipment, and
``(ii) the taxpayer satisfies the requirements under
paragraph (4) with respect to the construction of such
equipment, or
``(C) the construction of carbon capture equipment begins
prior to the date that is 60 days after the Secretary publishes
guidance with respect to the requirements of paragraphs (3)(A)
and (4), and such equipment is installed at a qualified
facility the construction of which begins prior to such date.
``(3) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified facility and any
carbon capture equipment placed in service at such facility are
that the taxpayer shall ensure that any laborers and mechanics
employed by the taxpayer or any contractor or subcontractor
in--
``(i) the construction of such facility or equipment,
and
``(ii) with respect to any taxable year, for any
portion of such taxable year which is within the period
described in paragraph (3)(A) or (4)(A) of subsection (a),
the alteration or repair of such facility or such
equipment,
shall be paid wages at rates not less than the prevailing rates
for construction, alteration, or repair of a similar character
in the locality in which such facility and equipment are
located as most recently determined by the Secretary of Labor,
in accordance with subchapter IV of chapter 31 of title 40,
United States Code. For purposes of determining an increased
credit amount under paragraph (1) for a taxable year, the
requirement under clause (ii) of this subparagraph is applied
to such taxable year in which the alteration or repair of
qualified facility occurs.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(4) Apprenticeship requirements.--Rules similar to the rules
of section 45(b)(8) shall apply.
``(5) Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines necessary
to carry out the purposes of this subsection, including regulations
or other guidance which provides for requirements for recordkeeping
or information reporting for purposes of administering the
requirements of this subsection.''.
(e) Credit Reduced for Tax-exempt Bonds.--Section 45Q(f) is
amended--
(1) by striking the second paragraph (3), as added at the end
of such section by section 80402(e) of the Infrastructure
Investment and Jobs Act (Public Law 117-58), and
(2) by adding at the end the following new paragraph:
``(8) Credit reduced for tax-exempt bonds.--Rules similar to
the rule under section 45(b)(3) shall apply for purposes of this
section.''.
(f) Application of Section for Certain Carbon Capture Equipment.--
Section 45Q(g) is amended by inserting ``the earlier of January 1,
2023, and'' before ``the end of the calendar year''.
(g) Election.--Section 45Q(f), as amended by subsection (e), is
amended by adding at the end the following new paragraph:
``(9) Election.--For purposes of paragraphs (3) and (4) of
subsection (a), a person described in paragraph (3)(A)(ii) may
elect, at such time and in such manner as the Secretary may
prescribe, to have the 12-year period begin on the first day of the
first taxable year in which a credit under this section is claimed
with respect to carbon capture equipment which is originally placed
in service at a qualified facility on or after the date of the
enactment of the Bipartisan Budget Act of 2018 (after application
of paragraph (6), where applicable) if--
``(A) no taxpayer claimed a credit under this section with
respect to such carbon capture equipment for any prior taxable
year,
``(B) the qualified facility at which such carbon capture
equipment is placed in service is located in an area affected
by a federally-declared disaster (as defined by section
165(i)(5)(A)) after the carbon capture equipment is originally
placed in service, and
``(C) such federally-declared disaster results in a
cessation of the operation of the qualified facility or the
carbon capture equipment after such equipment is originally
placed in service.''.
(h) Regulations for Baseline Carbon Oxide Production.--Subsection
(i) of section 45Q, as redesignated by subsection (d), is amended--
(1) in paragraph (1), by striking ``and'',
(2) in paragraph (2), by striking the period at the end and
inserting ``, and'', and
(3) by adding at the end the following new paragraph:
``(3) for purposes of subsection (d)(2)(B)(ii), adjust the
baseline carbon oxide production with respect to any applicable
electric generating unit at any electricity generating facility if,
after the date on which the carbon capture equipment is placed in
service, modifications which are chargeable to capital account are
made to such unit which result in a significant increase or
decrease in carbon oxide production.''.
(i) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2), (3), and
(4), the amendments made by this section shall apply to facilities
or equipment placed in service after December 31, 2022.
(2) Modification of carbon oxide capture requirements.--The
amendments made by subsection (a) shall apply to facilities or
equipment the construction of which begins after the date of
enactment of this Act.
(3) Application of section for certain carbon capture
equipment.--The amendments made by subsection (f) shall take effect
on the date of enactment of this Act.
(4) Election.--The amendments made by subsection (g) shall
apply to carbon oxide captured and disposed of after December 31,
2021.
SEC. 13105. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 45U. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.
``(a) Amount of Credit.--For purposes of section 38, the zero-
emission nuclear power production credit for any taxable year is an
amount equal to the amount by which--
``(1) the product of--
``(A) 0.3 cents, multiplied by
``(B) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a qualified nuclear
power facility, and
``(ii) sold by the taxpayer to an unrelated person
during the taxable year, exceeds
``(2) the reduction amount for such taxable year.
``(b) Definitions.--
``(1) Qualified nuclear power facility.--For purposes of this
section, the term `qualified nuclear power facility' means any
nuclear facility--
``(A) which is owned by the taxpayer and which uses nuclear
energy to produce electricity,
``(B) which is not an advanced nuclear power facility as
defined in subsection (d)(1) of section 45J, and
``(C) which is placed in service before the date of the
enactment of this section.
``(2) Reduction amount.--
``(A) In general.--For purposes of this section, the term
`reduction amount' means, with respect to any qualified nuclear
power facility for any taxable year, the amount equal to the
lesser of--
``(i) the amount determined under subsection (a)(1), or
``(ii) the amount equal to 16 percent of the excess
of--
``(I) subject to subparagraph (B), the gross
receipts from any electricity produced by such facility
(including any electricity services or products
provided in conjunction with the electricity produced
by such facility) and sold to an unrelated person
during such taxable year, over
``(II) the amount equal to the product of--
``(aa) 2.5 cents, multiplied by
``(bb) the amount determined under subsection
(a)(1)(B).
``(B) Treatment of certain receipts.--
``(i) In general.--Subject to clause (iii), the amount
determined under subparagraph (A)(ii)(I) shall include any
amount received by the taxpayer during the taxable year
with respect to the qualified nuclear power facility from a
zero-emission credit program. For purposes of determining
the amount received during such taxable year, the taxpayer
shall take into account any reductions required under such
program.
``(ii) Zero-emission credit program.--For purposes of
this subparagraph, the term `zero-emission credit program'
means any payments with respect to a qualified nuclear
power facility as a result of any Federal, State or local
government program for, in whole or in part, the zero-
emission, zero-carbon, or air quality attributes of any
portion of the electricity produced by such facility.
``(iii) Exclusion.--For purposes of clause (i), any
amount received by the taxpayer from a zero-emission credit
program shall be excluded from the amount determined under
subparagraph (A)(ii)(I) if the full amount of the credit
calculated pursuant to subsection (a) (determined without
regard to this subparagraph) is used to reduce payments
from such zero-emission credit program.
``(3) Electricity.--For purposes of this section, the term
`electricity' means the energy produced by a qualified nuclear
power facility from the conversion of nuclear fuel into electric
power.
``(c) Other Rules.--
``(1) Inflation adjustment.--The 0.3 cent amount in subsection
(a)(1)(A) and the 2.5 cent amount in subsection
(b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying such
amount by the inflation adjustment factor (as determined under
section 45(e)(2), as applied by substituting `calendar year 2023'
for `calendar year 1992' in subparagraph (B) thereof) for the
calendar year in which the sale occurs. If the 0.3 cent amount as
increased under this paragraph is not a multiple of 0.05 cent, such
amount shall be rounded to the nearest multiple of 0.05 cent. If
the 2.5 cent amount as increased under this paragraph is not a
multiple of 0.1 cent, such amount shall be rounded to the nearest
multiple of 0.1 cent.
``(2) Special rules.--Rules similar to the rules of paragraphs
(1), (3), (4), and (5) of section 45(e) shall apply for purposes of
this section.
``(d) Wage Requirements.--
``(1) Increased credit amount for qualified nuclear power
facilities.--In the case of any qualified nuclear power facility
which satisfies the requirements of paragraph (2)(A), the amount of
the credit determined under subsection (a) shall be equal to such
amount (as determined without regard to this sentence) multiplied
by 5.
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified nuclear power
facility are that the taxpayer shall ensure that any laborers
and mechanics employed by the taxpayer or any contractor or
subcontractor in the alteration or repair of such facility
shall be paid wages at rates not less than the prevailing rates
for alteration or repair of a similar character in the locality
in which such facility is located as most recently determined
by the Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(3) Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines necessary
to carry out the purposes of this subsection, including regulations
or other guidance which provides for requirements for recordkeeping
or information reporting for purposes of administering the
requirements of this subsection.
``(e) Termination.--This section shall not apply to taxable years
beginning after December 31, 2032.''.
(b) Conforming Amendments.--
(1) Section 38(b) is amended--
(A) in paragraph (32), by striking ``plus'' at the end,
(B) in paragraph (33), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(34) the zero-emission nuclear power production credit
determined under section 45U(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 45U. Zero-emission nuclear power production credit.''.
(c) Effective Date.--This section shall apply to electricity
produced and sold after December 31, 2023, in taxable years beginning
after such date.
PART 2--CLEAN FUELS
SEC. 13201. EXTENSION OF INCENTIVES FOR BIODIESEL, RENEWABLE DIESEL AND
ALTERNATIVE FUELS.
(a) Biodiesel and Renewable Diesel Credit.--Section 40A(g) is
amended by striking ``December 31, 2022'' and inserting ``December 31,
2024''.
(b) Biodiesel Mixture Credit.--
(1) In general.--Section 6426(c)(6) is amended by striking
``December 31, 2022'' and inserting ``December 31, 2024''.
(2) Fuels not used for taxable purposes.--Section 6427(e)(6)(B)
is amended by striking ``December 31, 2022'' and inserting
``December 31, 2024''.
(c) Alternative Fuel Credit.--Section 6426(d)(5) is amended by
striking ``December 31, 2021'' and inserting ``December 31, 2024''.
(d) Alternative Fuel Mixture Credit.--Section 6426(e)(3) is amended
by striking ``December 31, 2021'' and inserting ``December 31, 2024''.
(e) Payments for Alternative Fuels.--Section 6427(e)(6)(C) is
amended by striking ``December 31, 2021'' and inserting ``December 31,
2024''.
(f) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2021.
(g) Special Rule.--In the case of any alternative fuel credit
properly determined under section 6426(d) of the Internal Revenue Code
of 1986 for the period beginning on January 1, 2022, and ending with
the close of the last calendar quarter beginning before the date of the
enactment of this Act, such credit shall be allowed, and any refund or
payment attributable to such credit (including any payment under
section 6427(e) of such Code) shall be made, only in such manner as the
Secretary of the Treasury (or the Secretary's delegate) shall provide.
Such Secretary shall issue guidance within 30 days after the date of
the enactment of this Act providing for a one-time submission of claims
covering periods described in the preceding sentence. Such guidance
shall provide for a 180-day period for the submission of such claims
(in such manner as prescribed by such Secretary) to begin not later
than 30 days after such guidance is issued. Such claims shall be paid
by such Secretary not later than 60 days after receipt. If such
Secretary has not paid pursuant to a claim filed under this subsection
within 60 days after the date of the filing of such claim, the claim
shall be paid with interest from such date determined by using the
overpayment rate and method under section 6621 of such Code.
SEC. 13202. EXTENSION OF SECOND GENERATION BIOFUEL INCENTIVES.
(a) In General.--Section 40(b)(6)(J)(i) is amended by striking
``2022'' and inserting ``2025''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to qualified second generation biofuel production after December
31, 2021.
SEC. 13203. SUSTAINABLE AVIATION FUEL CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by inserting after section 40A the following new section:
``SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT.
``(a) In General.--For purposes of section 38, the sustainable
aviation fuel credit determined under this section for the taxable year
is, with respect to any sale or use of a qualified mixture which occurs
during such taxable year, an amount equal to the product of--
``(1) the number of gallons of sustainable aviation fuel in
such mixture, multiplied by
``(2) the sum of--
``(A) $1.25, plus
``(B) the applicable supplementary amount with respect to
such sustainable aviation fuel.
``(b) Applicable Supplementary Amount.--For purposes of this
section, the term `applicable supplementary amount' means, with respect
to any sustainable aviation fuel, an amount equal to $0.01 for each
percentage point by which the lifecycle greenhouse gas emissions
reduction percentage with respect to such fuel exceeds 50 percent. In
no event shall the applicable supplementary amount determined under
this subsection exceed $0.50.
``(c) Qualified Mixture.--For purposes of this section, the term
`qualified mixture' means a mixture of sustainable aviation fuel and
kerosene if--
``(1) such mixture is produced by the taxpayer in the United
States,
``(2) such mixture is used by the taxpayer (or sold by the
taxpayer for use) in an aircraft,
``(3) such sale or use is in the ordinary course of a trade or
business of the taxpayer, and
``(4) the transfer of such mixture to the fuel tank of such
aircraft occurs in the United States.
``(d) Sustainable Aviation Fuel.--
``(1) In general.--For purposes of this section, the term
`sustainable aviation fuel' means liquid fuel, the portion of which
is not kerosene, which--
``(A) meets the requirements of--
``(i) ASTM International Standard D7566, or
``(ii) the Fischer Tropsch provisions of ASTM
International Standard D1655, Annex A1,
``(B) is not derived from coprocessing an applicable
material (or materials derived from an applicable material)
with a feedstock which is not biomass,
``(C) is not derived from palm fatty acid distillates or
petroleum, and
``(D) has been certified in accordance with subsection (e)
as having a lifecycle greenhouse gas emissions reduction
percentage of at least 50 percent.
``(2) Definitions.--In this subsection--
``(A) Applicable material.--The term `applicable material'
means--
``(i) monoglycerides, diglycerides, and triglycerides,
``(ii) free fatty acids, and
``(iii) fatty acid esters.
``(B) Biomass.--The term `biomass' has the same meaning
given such term in section 45K(c)(3).
``(e) Lifecycle Greenhouse Gas Emissions Reduction Percentage.--For
purposes of this section, the term `lifecycle greenhouse gas emissions
reduction percentage' means, with respect to any sustainable aviation
fuel, the percentage reduction in lifecycle greenhouse gas emissions
achieved by such fuel as compared with petroleum-based jet fuel, as
defined in accordance with--
``(1) the most recent Carbon Offsetting and Reduction Scheme
for International Aviation which has been adopted by the
International Civil Aviation Organization with the agreement of the
United States, or
``(2) any similar methodology which satisfies the criteria
under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
7545(o)(1)(H)), as in effect on the date of enactment of this
section.
``(f) Registration of Sustainable Aviation Fuel Producers.--No
credit shall be allowed under this section with respect to any
sustainable aviation fuel unless the producer or importer of such
fuel--
``(1) is registered with the Secretary under section 4101, and
``(2) provides--
``(A) certification (in such form and manner as the
Secretary shall prescribe) from an unrelated party
demonstrating compliance with--
``(i) any general requirements, supply chain
traceability requirements, and information transmission
requirements established under the Carbon Offsetting and
Reduction Scheme for International Aviation described in
paragraph (1) of subsection (e), or
``(ii) in the case of any methodology established under
paragraph (2) of such subsection, requirements similar to
the requirements described in clause (i), and
``(B) such other information with respect to such fuel as
the Secretary may require for purposes of carrying out this
section.
``(g) Coordination With Credit Against Excise Tax.--The amount of
the credit determined under this section with respect to any
sustainable aviation fuel shall, under rules prescribed by the
Secretary, be properly reduced to take into account any benefit
provided with respect to such sustainable aviation fuel solely by
reason of the application of section 6426 or 6427(e).
``(h) Termination.--This section shall not apply to any sale or use
after December 31, 2024.''.
(b) Credit Made Part of General Business Credit.-- Section 38(b),
as amended by the preceding provisions of this Act, is amended by
striking ``plus'' at the end of paragraph (33), by striking the period
at the end of paragraph (34) and inserting ``, plus'', and by inserting
after paragraph (34) the following new paragraph:
``(35) the sustainable aviation fuel credit determined under
section 40B.''.
(c) Coordination With Biodiesel Incentives.--
(1) In general.--Section 40A(d)(1) is amended by inserting ``or
40B'' after ``determined under section 40''.
(2) Conforming amendment.--Section 40A(f) is amended by
striking paragraph (4).
(d) Sustainable Aviation Fuel Added to Credit for Alcohol Fuel,
Biodiesel, and Alternative Fuel Mixtures.--
(1) In general.--Section 6426 is amended by adding at the end
the following new subsection:
``(k) Sustainable Aviation Fuel Credit.--
``(1) In general.--For purposes of this section, the
sustainable aviation fuel credit for the taxable year is, with
respect to any sale or use of a qualified mixture, an amount equal
to the product of--
``(A) the number of gallons of sustainable aviation fuel in
such mixture, multiplied by
``(B) the sum of--
``(i) $1.25, plus
``(ii) the applicable supplementary amount with respect
to such sustainable aviation fuel.
``(2) Definitions.--Any term used in this subsection which is
also used in section 40B shall have the meaning given such term by
section 40B.
``(3) Registration requirement.--For purposes of this
subsection, rules similar to the rules of section 40B(f) shall
apply.''.
(2) Conforming amendments.--
(A) Section 6426 is amended--
(i) in subsection (a)(1), by striking ``and (e)'' and
inserting ``(e), and (k)'', and
(ii) in subsection (h), by striking ``under section 40
or 40A'' and inserting ``under section 40, 40A, or 40B''.
(B) Section 6427(e) is amended--
(i) in the heading, by striking ``or Alternative Fuel''
and inserting, ``Alternative Fuel, or Sustainable Aviation
Fuel'',
(ii) in paragraph (1), by inserting ``or the
sustainable aviation fuel mixture credit'' after
``alternative fuel mixture credit'', and
(iii) in paragraph (6)--
(I) in subparagraph (C), by striking ``and'' at the
end,
(II) in subparagraph (D), by striking the period at
the end and inserting ``, and'', and
(III) by adding at the end the following new
subparagraph:
``(E) any qualified mixture of sustainable aviation fuel
(as defined in section 6426(k)(3)) sold or used after December
31, 2024.''.
(C) Section 4101(a)(1) is amended by inserting ``every
person producing or importing sustainable aviation fuel (as
defined in section 40B),'' before ``and every person producing
second generation biofuel''.
(D) The table of sections for subpart D of subchapter A of
chapter 1 is amended by inserting after the item relating to
section 40A the following new item:
``Sec. 40B. Sustainable aviation fuel credit.''.
(e) Amount of Credit Included in Gross Income.--Section 87 is
amended by striking ``and'' in paragraph (1), by striking the period at
the end of paragraph (2) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(3) the sustainable aviation fuel credit determined with
respect to the taxpayer for the taxable year under section
40B(a).''.
(f) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after December 31, 2022.
SEC. 13204. CLEAN HYDROGEN.
(a) Credit for Production of Clean Hydrogen.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1, as amended by the preceding provisions of this Act, is
amended by adding at the end the following new section:
``SEC. 45V. CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.
``(a) Amount of Credit.--For purposes of section 38, the clean
hydrogen production credit for any taxable year is an amount equal to
the product of--
``(1) the kilograms of qualified clean hydrogen produced by the
taxpayer during such taxable year at a qualified clean hydrogen
production facility during the 10-year period beginning on the date
such facility was originally placed in service, multiplied by
``(2) the applicable amount (as determined under subsection
(b)) with respect to such hydrogen.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a)(2), the
applicable amount shall be an amount equal to the applicable
percentage of $0.60. If any amount as determined under the
preceding sentence is not a multiple of 0.1 cent, such amount shall
be rounded to the nearest multiple of 0.1 cent.
``(2) Applicable percentage.--For purposes of paragraph (1),
the applicable percentage shall be determined as follows:
``(A) In the case of any qualified clean hydrogen which is
produced through a process that results in a lifecycle
greenhouse gas emissions rate of--
``(i) not greater than 4 kilograms of CO2e per kilogram
of hydrogen, and
``(ii) not less than 2.5 kilograms of CO2e per kilogram
of hydrogen,
the applicable percentage shall be 20 percent.
``(B) In the case of any qualified clean hydrogen which is
produced through a process that results in a lifecycle
greenhouse gas emissions rate of--
``(i) less than 2.5 kilograms of CO2e per kilogram of
hydrogen, and
``(ii) not less than 1.5 kilograms of CO2e per kilogram
of hydrogen,
the applicable percentage shall be 25 percent.
``(C) In the case of any qualified clean hydrogen which is
produced through a process that results in a lifecycle
greenhouse gas emissions rate of--
``(i) less than 1.5 kilograms of CO2e per kilogram of
hydrogen, and
``(ii) not less than 0.45 kilograms of CO2e per
kilogram of hydrogen,
the applicable percentage shall be 33.4 percent.
``(D) In the case of any qualified clean hydrogen which is
produced through a process that results in a lifecycle
greenhouse gas emissions rate of less than 0.45 kilograms of
CO2e per kilogram of hydrogen, the applicable percentage shall
be 100 percent.
``(3) Inflation adjustment.--The $0.60 amount in paragraph (1)
shall be adjusted by multiplying such amount by the inflation
adjustment factor (as determined under section 45(e)(2), determined
by substituting `2022' for `1992' in subparagraph (B) thereof) for
the calendar year in which the qualified clean hydrogen is
produced. If any amount as increased under the preceding sentence
is not a multiple of 0.1 cent, such amount shall be rounded to the
nearest multiple of 0.1 cent.
``(c) Definitions.--For purposes of this section--
``(1) Lifecycle greenhouse gas emissions.--
``(A) In general.--Subject to subparagraph (B), the term
`lifecycle greenhouse gas emissions' has the same meaning given
such term under subparagraph (H) of section 211(o)(1) of the
Clean Air Act (42 U.S.C. 7545(o)(1)), as in effect on the date
of enactment of this section.
``(B) GREET model.--The term `lifecycle greenhouse gas
emissions' shall only include emissions through the point of
production (well-to-gate), as determined under the most recent
Greenhouse gases, Regulated Emissions, and Energy use in
Transportation model (commonly referred to as the `GREET
model') developed by Argonne National Laboratory, or a
successor model (as determined by the Secretary).
``(2) Qualified clean hydrogen.--
``(A) In general.--The term `qualified clean hydrogen'
means hydrogen which is produced through a process that results
in a lifecycle greenhouse gas emissions rate of not greater
than 4 kilograms of CO2e per kilogram of hydrogen.
``(B) Additional requirements.--Such term shall not include
any hydrogen unless--
``(i) such hydrogen is produced--
``(I) in the United States (as defined in section
638(1)) or a possession of the United States (as
defined in section 638(2)),
``(II) in the ordinary course of a trade or
business of the taxpayer, and
``(III) for sale or use, and
``(ii) the production and sale or use of such hydrogen
is verified by an unrelated party.
``(C) Provisional emissions rate.--In the case of any
hydrogen for which a lifecycle greenhouse gas emissions rate
has not been determined for purposes of this section, a
taxpayer producing such hydrogen may file a petition with the
Secretary for determination of the lifecycle greenhouse gas
emissions rate with respect to such hydrogen.
``(3) Qualified clean hydrogen production facility.--The term
`qualified clean hydrogen production facility' means a facility--
``(A) owned by the taxpayer,
``(B) which produces qualified clean hydrogen, and
``(C) the construction of which begins before January 1,
2033.
``(d) Special Rules.--
``(1) Treatment of facilities owned by more than 1 taxpayer.--
Rules similar to the rules section 45(e)(3) shall apply for
purposes of this section.
``(2) Coordination with credit for carbon oxide
sequestration.--No credit shall be allowed under this section with
respect to any qualified clean hydrogen produced at a facility
which includes carbon capture equipment for which a credit is
allowed to any taxpayer under section 45Q for the taxable year or
any prior taxable year.
``(e) Increased Credit Amount for Qualified Clean Hydrogen
Production Facilities.--
``(1) In general.--In the case of any qualified clean hydrogen
production facility which satisfies the requirements of paragraph
(2), the amount of the credit determined under subsection (a) with
respect to qualified clean hydrogen described in subsection (b)(2)
shall be equal to such amount (determined without regard to this
sentence) multiplied by 5.
``(2) Requirements.--A facility meets the requirements of this
paragraph if it is one of the following:
``(A) A facility--
``(i) the construction of which begins prior to the
date that is 60 days after the Secretary publishes guidance
with respect to the requirements of paragraphs (3)(A) and
(4), and
``(ii) which meets the requirements of paragraph (3)(A)
with respect to alteration or repair of such facility which
occurs after such date.
``(B) A facility which satisfies the requirements of
paragraphs (3)(A) and (4).
``(3) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified clean hydrogen
production facility are that the taxpayer shall ensure that any
laborers and mechanics employed by the taxpayer or any
contractor or subcontractor in--
``(i) the construction of such facility, and
``(ii) with respect to any taxable year, for any
portion of such taxable year which is within the period
described in subsection (a)(2), the alteration or repair of
such facility,
shall be paid wages at rates not less than the prevailing rates
for construction, alteration, or repair of a similar character
in the locality in which such facility is located as most
recently determined by the Secretary of Labor, in accordance
with subchapter IV of chapter 31 of title 40, United States
Code. For purposes of determining an increased credit amount
under paragraph (1) for a taxable year, the requirement under
clause (ii) of this subparagraph is applied to such taxable
year in which the alteration or repair of qualified facility
occurs.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(4) Apprenticeship requirements.--Rules similar to the rules
of section 45(b)(8) shall apply.
``(5) Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines necessary
to carry out the purposes of this subsection, including regulations
or other guidance which provides for requirements for recordkeeping
or information reporting for purposes of administering the
requirements of this subsection.
``(f) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall issue regulations or
other guidance to carry out the purposes of this section, including
regulations or other guidance for determining lifecycle greenhouse gas
emissions.''.
(2) Credit reduced for tax-exempt bonds.--Section 45V(d), as
added by this section, is amended by adding at the end the
following new paragraph:
``(3) Credit reduced for tax-exempt bonds.--Rules similar to
the rule under section 45(b)(3) shall apply for purposes of this
section.''.
(3) Modification of existing facilities.--Section 45V(d), as
added and amended by the preceding provisions of this section, is
amended by adding at the end the following new paragraph:
``(4) Modification of existing facilities.--For purposes of
subsection (a)(1), in the case of any facility which--
``(A) was originally placed in service before January 1,
2023, and, prior to the modification described in subparagraph
(B), did not produce qualified clean hydrogen, and
``(B) after the date such facility was originally placed in
service--
``(i) is modified to produce qualified clean hydrogen,
and
``(ii) amounts paid or incurred with respect to such
modification are properly chargeable to capital account of
the taxpayer,
such facility shall be deemed to have been originally placed in
service as of the date that the property required to complete the
modification described in subparagraph (B) is placed in service.''.
(4) Conforming amendments.--
(A) Section 38(b), as amended by the preceding provisions
of this Act, is amended--
(i) in paragraph (34), by striking ``plus'' at the end,
(ii) in paragraph (35), by striking the period at the
end and inserting ``, plus'', and
(iii) by adding at the end the following new paragraph:
``(36) the clean hydrogen production credit determined under
section 45V(a).''.
(B) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new item:
``Sec. 45V. Credit for production of clean hydrogen.''.
(5) Effective dates.--
(A) In general.--The amendments made by paragraphs (1) and
(4) of this subsection shall apply to hydrogen produced after
December 31, 2022.
(B) Credit reduced for tax-exempt bonds.--The amendment
made by paragraph (2) shall apply to facilities the
construction of which begins after the date of enactment of
this Act.
(C) Modification of existing facilities.--The amendment
made by paragraph (3) shall apply to modifications made after
December 31, 2022.
(b) Credit for Electricity Produced From Renewable Resources
Allowed if Electricity Is Used to Produce Clean Hydrogen.--
(1) In general.--Section 45(e), as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new paragraph:
``(13) Special rule for electricity used at a qualified clean
hydrogen production facility.--Electricity produced by the taxpayer
shall be treated as sold by such taxpayer to an unrelated person
during the taxable year if--
``(A) such electricity is used during such taxable year by
the taxpayer or a person related to the taxpayer at a qualified
clean hydrogen production facility (as defined in section
45V(c)(3)) to produce qualified clean hydrogen (as defined in
section 45V(c)(2)), and
``(B) such use and production is verified (in such form or
manner as the Secretary may prescribe) by an unrelated third
party.''.
(2) Similar rule for zero-emission nuclear power production
credit.--Subsection (c)(2) of section 45U, as added by section
13105 of this Act, is amended by striking ``and (5)'' and inserting
``(5), and (13)''.
(3) Effective date.--The amendments made by this subsection
shall apply to electricity produced after December 31, 2022.
(c) Election to Treat Clean Hydrogen Production Facilities as
Energy Property.--
(1) In general.--Section 48(a), as amended by the preceding
provisions of this Act, is amended--
(A) by redesignating paragraph (15) as paragraph (16), and
(B) by inserting after paragraph (14) the following new
paragraph:
``(15) Election to treat clean hydrogen production facilities
as energy property.--
``(A) In general.--In the case of any qualified property
(as defined in paragraph (5)(D)) which is part of a specified
clean hydrogen production facility--
``(i) such property shall be treated as energy property
for purposes of this section, and
``(ii) the energy percentage with respect to such
property is--
``(I) in the case of a facility which is designed
and reasonably expected to produce qualified clean
hydrogen which is described in a subparagraph (A) of
section 45V(b)(2), 1.2 percent,
``(II) in the case of a facility which is designed
and reasonably expected to produce qualified clean
hydrogen which is described in a subparagraph (B) of
such section, 1.5 percent,
``(III) in the case of a facility which is designed
and reasonably expected to produce qualified clean
hydrogen which is described in a subparagraph (C) of
such section, 2 percent, and
``(IV) in the case of a facility which is designed
and reasonably expected to produce qualified clean
hydrogen which is described in subparagraph (D) of such
section, 6 percent.
``(B) Denial of production credit.--No credit shall be
allowed under section 45V or section 45Q for any taxable year
with respect to any specified clean hydrogen production
facility or any carbon capture equipment included at such
facility.
``(C) Specified clean hydrogen production facility.--For
purposes of this paragraph, the term `specified clean hydrogen
production facility' means any qualified clean hydrogen
production facility (as defined in section 45V(c)(3))--
``(i) which is placed in service after December 31,
2022,
``(ii) with respect to which--
``(I) no credit has been allowed under section 45V
or 45Q, and
``(II) the taxpayer makes an irrevocable election
to have this paragraph apply, and
``(iii) for which an unrelated third party has verified
(in such form or manner as the Secretary may prescribe)
that such facility produces hydrogen through a process
which results in lifecycle greenhouse gas emissions which
are consistent with the hydrogen that such facility was
designed and expected to produce under subparagraph
(A)(ii).
``(D) Qualified clean hydrogen.--For purposes of this
paragraph, the term `qualified clean hydrogen' has the meaning
given such term by section 45V(c)(2).
``(E) Regulations.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this section, including
regulations or other guidance which recaptures so much of any
credit allowed under this section as exceeds the amount of the
credit which would have been allowed if the expected production
were consistent with the actual verified production (or all of
the credit so allowed in the absence of such verification).''.
(2) Conforming amendment.--Paragraph (9)(A)(i) of section
48(a), as added by section 13102, is amended by inserting ``and
paragraph (15)'' after ``paragraphs (1) through (8)''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31, 2022,
and, for any property the construction of which begins prior to
January 1, 2023, only to the extent of the basis thereof
attributable to the construction, reconstruction, or erection after
December 31, 2022.
(d) Termination of Excise Tax Credit for Hydrogen.--
(1) In general.--Section 6426(d)(2) is amended by striking
subparagraph (D) and by redesignating subparagraphs (E), (F), and
(G) as subparagraphs (D), (E), and (F), respectively.
(2) Conforming amendment.--Section 6426(e)(2) is amended by
striking ``(F)'' and inserting ``(E)''.
(3) Effective date.--The amendments made by this subsection
shall apply to fuel sold or used after December 31, 2022.
PART 3--CLEAN ENERGY AND EFFICIENCY INCENTIVES FOR INDIVIDUALS
SEC. 13301. EXTENSION, INCREASE, AND MODIFICATIONS OF NONBUSINESS
ENERGY PROPERTY CREDIT.
(a) Extension of Credit.--Section 25C(g)(2) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2032''.
(b) Allowance of Credit.--Section 25C(a) is amended to read as
follows:
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 30 percent of the sum of--
``(1) the amount paid or incurred by the taxpayer for qualified
energy efficiency improvements installed during such taxable year,
and
``(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during such taxable
year.''.
(c) Application of Annual Limitation in Lieu of Lifetime
Limitation.--Section 25C(b) is amended to read as follows:
``(b) Limitations.--
``(1) In general.--The credit allowed under this section with
respect to any taxpayer for any taxable year shall not exceed
$1,200.
``(2) Energy property.--The credit allowed under this section
by reason of subsection (a)(2) with respect to any taxpayer for any
taxable year shall not exceed, with respect to any item of
qualified energy property, $600.
``(3) Windows.--The credit allowed under this section by reason
of subsection (a)(1) with respect to any taxpayer for any taxable
year shall not exceed, in the aggregate with respect to all
exterior windows and skylights, $600.
``(4) Doors.--The credit allowed under this section by reason
of subsection (a)(1) with respect to any taxpayer for any taxable
year shall not exceed--
``(A) $250 in the case of any exterior door, and
``(B) $500 in the aggregate with respect to all exterior
doors.
``(5) Heat pump and heat pump water heaters; biomass stoves and
boilers.--Notwithstanding paragraphs (1) and (2), the credit
allowed under this section by reason of subsection (a)(2) with
respect to any taxpayer for any taxable year shall not, in the
aggregate, exceed $2,000 with respect to amounts paid or incurred
for property described in clauses (i) and (ii) of subsection
(d)(2)(A) and in subsection (d)(2)(B).''.
(d) Modifications Related to Qualified Energy Efficiency
Improvements.--
(1) Standards for energy efficient building envelope
components.--Section 25C(c)(2) is amended by striking ``meets--''
and all that follows through the period at the end and inserting
the following: ``meets--
``(A) in the case of an exterior window or skylight, Energy
Star most efficient certification requirements,
``(B) in the case of an exterior door, applicable Energy
Star requirements, and
``(C) in the case of any other component, the prescriptive
criteria for such component established by the most recent
International Energy Conservation Code standard in effect as of
the beginning of the calendar year which is 2 years prior to
the calendar year in which such component is placed in
service.''.
(2) Roofs not treated as building envelope components.--Section
25C(c)(3) is amended by adding ``and'' at the end of subparagraph
(B), by striking ``, and'' at the end of subparagraph (C) and
inserting a period, and by striking subparagraph (D).
(3) Air sealing insulation added to definition of building
envelope component.--Section 25C(c)(3)(A) is amended by inserting
``, including air sealing material or system,'' after ``material or
system''.
(e) Modification of Residential Energy Property Expenditures.--
Section 25C(d) is amended to read as follows:
``(d) Residential Energy Property Expenditures.--For purposes of
this section--
``(1) In general.--The term `residential energy property
expenditures' means expenditures made by the taxpayer for qualified
energy property which is--
``(A) installed on or in connection with a dwelling unit
located in the United States and used as a residence by the
taxpayer, and
``(B) originally placed in service by the taxpayer.
Such term includes expenditures for labor costs properly allocable
to the onsite preparation, assembly, or original installation of
the property.
``(2) Qualified energy property.--The term `qualified energy
property' means any of the following:
``(A) Any of the following which meet or exceed the highest
efficiency tier (not including any advanced tier) established
by the Consortium for Energy Efficiency which is in effect as
of the beginning of the calendar year in which the property is
placed in service:
``(i) An electric or natural gas heat pump water
heater.
``(ii) An electric or natural gas heat pump.
``(iii) A central air conditioner.
``(iv) A natural gas, propane, or oil water heater.
``(v) A natural gas, propane, or oil furnace or hot
water boiler.
``(B) A biomass stove or boiler which--
``(i) uses the burning of biomass fuel to heat a
dwelling unit located in the United States and used as a
residence by the taxpayer, or to heat water for use in such
a dwelling unit, and
``(ii) has a thermal efficiency rating of at least 75
percent (measured by the higher heating value of the fuel).
``(C) Any oil furnace or hot water boiler which--
``(i) is placed in service after December 31, 2022, and
before January 1, 2027, and--
``(I) meets or exceeds 2021 Energy Star efficiency
criteria, and
``(II) is rated by the manufacturer for use with
fuel blends at least 20 percent of the volume of which
consists of an eligible fuel, or
``(ii) is placed in service after December 31, 2026,
and--
``(I) achieves an annual fuel utilization
efficiency rate of not less than 90, and
``(II) is rated by the manufacturer for use with
fuel blends at least 50 percent of the volume of which
consists of an eligible fuel.
``(D) Any improvement to, or replacement of, a panelboard,
sub-panelboard, branch circuits, or feeders which--
``(i) is installed in a manner consistent with the
National Electric Code,
``(ii) has a load capacity of not less than 200 amps,
``(iii) is installed in conjunction with--
``(I) any qualified energy efficiency improvements,
or
``(II) any qualified energy property described in
subparagraphs (A) through (C) for which a credit is
allowed under this section for expenditures with
respect to such property, and
``(iv) enables the installation and use of any property
described in subclause (I) or (II) of clause (iii).
``(3) Eligible fuel.--For purposes of paragraph (2), the term
`eligible fuel' means--
``(A) biodiesel and renewable diesel (within the meaning of
section 40A), and
``(B) second generation biofuel (within the meaning of
section 40).''.
(f) Home Energy Audits.--
(1) In general.--Section 25C(a), as amended by subsection (b),
is amended by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(3) the amount paid or incurred by the taxpayer during the
taxable year for home energy audits.''.
(2) Limitation.--Section 25C(b), as amended by subsection (c),
is amended adding at the end the following new paragraph:
``(6) Home energy audits.--
``(A) Dollar limitation.--The amount of the credit allowed
under this section by reason of subsection (a)(3) shall not
exceed $150.
``(B) Substantiation requirement.--No credit shall be
allowed under this section by reason of subsection (a)(3)
unless the taxpayer includes with the taxpayer's return of tax
such information or documentation as the Secretary may
require.''.
(3) Home energy audits.--
(A) In general.--Section 25C is amended by redesignating
subsections (e), (f), and (g), as subsections (f), (g), and
(h), respectively, and by inserting after subsection (d) the
following new subsection:
``(e) Home Energy Audits.--For purposes of this section, the term
`home energy audit' means an inspection and written report with respect
to a dwelling unit located in the United States and owned or used by
the taxpayer as the taxpayer's principal residence (within the meaning
of section 121) which--
``(1) identifies the most significant and cost-effective energy
efficiency improvements with respect to such dwelling unit,
including an estimate of the energy and cost savings with respect
to each such improvement, and
``(2) is conducted and prepared by a home energy auditor that
meets the certification or other requirements specified by the
Secretary in regulations or other guidance (as prescribed by the
Secretary not later than 365 days after the date of the enactment
of this subsection).''.
(B) Conforming amendment.--Section 1016(a)(33) is amended
by striking ``section 25C(f)'' and inserting ``section
25C(g)''.
(4) Lack of substantiation treated as mathematical or clerical
error.--Section 6213(g)(2) is amended--
(A) in subparagraph (P), by striking ``and'' at the end,
(B) in subparagraph (Q), by striking the period at the end
and inserting ``, and'', and
(C) by inserting after subparagraph (Q) the following:
``(R) an omission of information or documentation required
under section 25C(b)(6)(B) (relating to home energy audits) to
be included on a return.''.
(g) Identification Number Requirement.--
(1) In general.--Section 25C, as amended by this section, is
amended by redesignating subsection (h) as subsection (i) and by
inserting after subsection (g) the following new subsection:
``(h) Product Identification Number Requirement.--
``(1) In general.--No credit shall be allowed under subsection
(a) with respect to any item of specified property placed in
service after December 31, 2024, unless--
``(A) such item is produced by a qualified manufacturer,
and
``(B) the taxpayer includes the qualified product
identification number of such item on the return of tax for the
taxable year.
``(2) Qualified product identification number.--For purposes of
this section, the term `qualified product identification number'
means, with respect to any item of specified property, the product
identification number assigned to such item by the qualified
manufacturer pursuant to the methodology referred to in paragraph
(3).
``(3) Qualified manufacturer.--For purposes of this section,
the term `qualified manufacturer' means any manufacturer of
specified property which enters into an agreement with the
Secretary which provides that such manufacturer will--
``(A) assign a product identification number to each item
of specified property produced by such manufacturer utilizing a
methodology that will ensure that such number (including any
alphanumeric) is unique to each such item (by utilizing numbers
or letters which are unique to such manufacturer or by such
other method as the Secretary may provide),
``(B) label such item with such number in such manner as
the Secretary may provide, and
``(C) make periodic written reports to the Secretary (at
such times and in such manner as the Secretary may provide) of
the product identification numbers so assigned and including
such information as the Secretary may require with respect to
the item of specified property to which such number was so
assigned.
``(4) Specified property.--For purposes of this subsection, the
term `specified property' means any qualified energy property and
any property described in subparagraph (B) or (C) of subsection
(c)(3).''.
(2) Omission of correct product identification number treated
as mathematical or clerical error.--Section 6213(g)(2), as amended
by the preceding provisions of this Act, is amended--
(A) in subparagraph (Q), by striking ``and'' at the end,
(B) in subparagraph (R), by striking the period at the end
and inserting ``, and'', and
(C) by inserting after subparagraph (R) the following:
``(S) an omission of a correct product identification
number required under section 25C(h) (relating to credit for
nonbusiness energy property) to be included on a return.''.
(h) Energy Efficient Home Improvement Credit.--
(1) In general.--The heading for section 25C is amended by
striking ``nonbusiness energy property'' and inserting ``energy
efficient home improvement credit''.
(2) Clerical amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 is amended by striking the
item relating to section 25C and inserting after the item relating
to section 25B the following item:
``Sec. 25C. Energy efficient home improvement credit.''.
(i) Effective Dates.--
(1) In general.--Except as otherwise provided by this
subsection, the amendments made by this section shall apply to
property placed in service after December 31, 2022.
(2) Extension of credit.--The amendments made by subsection (a)
shall apply to property placed in service after December 31, 2021.
(3) Identification number requirement.--The amendments made by
subsection (g) shall apply to property placed in service after
December 31, 2024.
SEC. 13302. RESIDENTIAL CLEAN ENERGY CREDIT.
(a) Extension of Credit.--
(1) In general.--Section 25D(h) is amended by striking
``December 31, 2023'' and inserting ``December 31, 2034''.
(2) Application of phaseout.--Section 25D(g) is amended--
(A) in paragraph (2), by striking ``before January 1, 2023,
26 percent, and'' and inserting ``before January 1, 2022, 26
percent,'', and
(B) by striking paragraph (3) and by inserting after
paragraph (2) the following new paragraphs:
``(3) in the case of property placed in service after December
31, 2021, and before January 1, 2033, 30 percent,
``(4) in the case of property placed in service after December
31, 2032, and before January 1, 2034, 26 percent, and
``(5) in the case of property placed in service after December
31, 2033, and before January 1, 2035, 22 percent.''.
(b) Residential Clean Energy Credit for Battery Storage Technology;
Certain Expenditures Disallowed.--
(1) Allowance of credit.--Paragraph (6) of section 25D(a) is
amended to read as follows:
``(6) the qualified battery storage technology expenditures,''.
(2) Definition of qualified battery storage technology
expenditure.--Paragraph (6) of section 25D(d) is amended to read as
follows:
``(6) Qualified battery storage technology expenditure.--The
term `qualified battery storage technology expenditure' means an
expenditure for battery storage technology which--
``(A) is installed in connection with a dwelling unit
located in the United States and used as a residence by the
taxpayer, and
``(B) has a capacity of not less than 3 kilowatt hours.''.
(c) Conforming Amendments.--
(1) Section 25D(d)(3) is amended by inserting ``, without
regard to subparagraph (D) thereof'' after ``section 48(c)(1)''.
(2) The heading for section 25D is amended by striking ``energy
efficient property'' and inserting ``clean energy credit''.
(3) The table of sections for subpart A of part IV of
subchapter A of chapter 1 is amended by striking the item relating
to section 25D and inserting the following:
``Sec. 25D. Residential clean energy credit.''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to expenditures made
after December 31, 2021.
(2) Residential clean energy credit for battery storage
technology; certain expenditures disallowed.--The amendments made
by subsection (b) shall apply to expenditures made after December
31, 2022.
SEC. 13303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) In General.--
(1) Maximum amount of deduction.--Subsection (b) of section
179D is amended to read as follows:
``(b) Maximum Amount of Deduction.--
``(1) In general.--The deduction under subsection (a) with
respect to any building for any taxable year shall not exceed the
excess (if any) of--
``(A) the product of--
``(i) the applicable dollar value, and
``(ii) the square footage of the building, over
``(B) the aggregate amount of the deductions under
subsections (a) and (f) with respect to the building for the 3
taxable years immediately preceding such taxable year (or, in
the case of any such deduction allowable to a person other than
the taxpayer, for any taxable year ending during the 4-taxable-
year period ending with such taxable year).
``(2) Applicable dollar value.--For purposes of paragraph
(1)(A)(i), the applicable dollar value shall be an amount equal to
$0.50 increased (but not above $1.00) by $0.02 for each percentage
point by which the total annual energy and power costs for the
building are certified to be reduced by a percentage greater than
25 percent.
``(3) Increased deduction amount for certain property.--
``(A) In general.--In the case of any property which
satisfies the requirements of subparagraph (B), paragraph (2)
shall be applied by substituting `$2.50' for `$0.50', `$.10'
for `$.02', and `$5.00' for `$1.00'.
``(B) Property requirements.--In the case of any energy
efficient commercial building property, energy efficient
building retrofit property, or property installed pursuant to a
qualified retrofit plan, such property shall meet the
requirements of this subparagraph if --
``(i) installation of such property begins prior to the
date that is 60 days after the Secretary publishes guidance
with respect to the requirements of paragraphs (4)(A) and
(5), or
``(ii) installation of such property satisfies the
requirements of paragraphs (4)(A) and (5).
``(4) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any property are that the taxpayer
shall ensure that any laborers and mechanics employed by the
taxpayer or any contractor or subcontractor in the installation
of any property shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or repair of a
similar character in the locality in which such property is
located as most recently determined by the Secretary of Labor,
in accordance with subchapter IV of chapter 31 of title 40,
United States Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(5) Apprenticeship requirements.--Rules similar to the rules
of section 45(b)(8) shall apply.
``(6) Regulations.--The Secretary shall issue such regulations
or other guidance as the Secretary determines necessary to carry
out the purposes of this subsection, including regulations or other
guidance which provides for requirements for recordkeeping or
information reporting for purposes of administering the
requirements of this subsection.''.
(2) Modification of efficiency standard.--Section 179D(c)(1)(D)
is amended by striking ``50 percent'' and inserting ``25 percent''.
(3) Reference standard.--Section 179D(c)(2) is amended by
striking ``the most recent'' and inserting the following: ``the
more recent of--
``(A) Standard 90.1-2007 published by the American Society
of Heating, Refrigerating, and Air Conditioning Engineers and
the Illuminating Engineering Society of North America, or
``(B) the most recent''.
(4) Final determination; extension of period; placed in service
deadline.--Subparagraph (B) of section 179D(c)(2), as amended by
paragraph (3), is amended--
(A) by inserting ``for which the Department of Energy has
issued a final determination and'' before ``which has been
affirmed'',
(B) by striking ``2 years'' and inserting ``4 years'', and
(C) by striking ``that construction of such property
begins'' and inserting ``such property is placed in service''.
(5) Elimination of partial allowance.--
(A) In general.--Section 179D(d) is amended--
(i) by striking paragraph (1), and
(ii) by redesignating paragraphs (2) through (6) as
paragraphs (1) through (5), respectively.
(B) Conforming amendments.--
(i) Section 179D(c)(1)(D) is amended--
(I) by striking ``subsection (d)(6)'' and inserting
``subsection (d)(5)'', and
(II) by striking ``subsection (d)(2)'' and
inserting ``subsection (d)(1)''.
(ii) Paragraph (2)(A) of section 179D(d), as
redesignated by subparagraph (A), is amended by striking
``paragraph (2)'' and inserting ``paragraph (1)''.
(iii) Paragraph (4) of section 179D(d), as redesignated
by subparagraph (A), is amended by striking ``paragraph
(3)(B)(iii)'' and inserting ``paragraph (2)(B)(iii)''.
(iv) Section 179D is amended by striking subsection
(f).
(v) Section 179D(h) is amended by striking ``or
(d)(1)(A)''.
(6) Allocation of deduction by certain tax-exempt entities.--
Paragraph (3) of section 179D(d), as redesignated by paragraph
(5)(A), is amended to read as follows:
``(3) Allocation of deduction by certain tax-exempt entities.--
``(A) In general.--In the case of energy efficient
commercial building property installed on or in property owned
by a specified tax-exempt entity, the Secretary shall
promulgate regulations or guidance to allow the allocation of
the deduction to the person primarily responsible for designing
the property in lieu of the owner of such property. Such person
shall be treated as the taxpayer for purposes of this section.
``(B) Specified tax-exempt entity.--For purposes of this
paragraph, the term `specified tax-exempt entity' means--
``(i) the United States, any State or political
subdivision thereof, any possession of the United States,
or any agency or instrumentality of any of the foregoing,
``(ii) an Indian tribal government (as defined in
section 30D(g)(9)) or Alaska Native Corporation (as defined
in section 3 of the Alaska Native Claims Settlement Act (43
U.S.C. 1602(m)), and
``(iii) any organization exempt from tax imposed by
this chapter.''.
(7) Alternative deduction for energy efficient building
retrofit property.--Section 179D, as amended by the preceding
provisions of this section, is amended by inserting after
subsection (e) the following new subsection:
``(f) Alternative Deduction for Energy Efficient Building Retrofit
Property.--
``(1) In general.--In the case of a taxpayer which elects (at
such time and in such manner as the Secretary may provide) the
application of this subsection with respect to any qualified
building, there shall be allowed as a deduction for the taxable
year which includes the date of the qualifying final certification
with respect to the qualified retrofit plan of such building, an
amount equal to the lesser of--
``(A) the excess described in subsection (b) (determined by
substituting `energy use intensity' for `total annual energy
and power costs' in paragraph (2) thereof), or
``(B) the aggregate adjusted basis (determined after taking
into account all adjustments with respect to such taxable year
other than the reduction under subsection (e)) of energy
efficient building retrofit property placed in service by the
taxpayer pursuant to such qualified retrofit plan.
``(2) Qualified retrofit plan.--For purposes of this
subsection, the term `qualified retrofit plan' means a written plan
prepared by a qualified professional which specifies modifications
to a building which, in the aggregate, are expected to reduce such
building's energy use intensity by 25 percent or more in comparison
to the baseline energy use intensity of such building. Such plan
shall provide for a qualified professional to--
``(A) as of any date during the 1-year period ending on the
date on which the property installed pursuant to such plan is
placed in service, certify the energy use intensity of such
building as of such date,
``(B) certify the status of property installed pursuant to
such plan as meeting the requirements of subparagraphs (B) and
(C) of paragraph (3), and
``(C) as of any date that is more than 1 year after the
date on which the property installed pursuant to such plan is
placed in service, certify the energy use intensity of such
building as of such date.
``(3) Energy efficient building retrofit property.--For
purposes of this subsection, the term `energy efficient building
retrofit property' means property--
``(A) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable,
``(B) which is installed on or in any qualified building,
``(C) which is installed as part of--
``(i) the interior lighting systems,
``(ii) the heating, cooling, ventilation, and hot water
systems, or
``(iii) the building envelope, and
``(D) which is certified in accordance with paragraph
(2)(B) as meeting the requirements of subparagraphs (B) and
(C).
``(4) Qualified building.--For purposes of this subsection, the
term `qualified building' means any building which--
``(A) is located in the United States, and
``(B) was originally placed in service not less than 5
years before the establishment of the qualified retrofit plan
with respect to such building.
``(5) Qualifying final certification.--For purposes of this
subsection, the term `qualifying final certification' means, with
respect to any qualified retrofit plan, the certification described
in paragraph (2)(C) if the energy use intensity certified in such
certification is not more than 75 percent of the baseline energy
use intensity of the building.
``(6) Baseline energy use intensity.--
``(A) In general.--For purposes of this subsection, the
term `baseline energy use intensity' means the energy use
intensity certified under paragraph (2)(A), as adjusted to take
into account weather.
``(B) Determination of adjustment.--For purposes of
subparagraph (A), the adjustments described in such
subparagraph shall be determined in such manner as the
Secretary may provide.
``(7) Other definitions.--For purposes of this subsection--
``(A) Energy use intensity.--The term `energy use
intensity' means the annualized, measured site energy use
intensity determined in accordance with such regulations or
other guidance as the Secretary may provide and measured in
British thermal units.
``(B) Qualified professional.--The term `qualified
professional' means an individual who is a licensed architect
or a licensed engineer and meets such other requirements as the
Secretary may provide.
``(8) Coordination with deduction otherwise allowed under
subsection (a).--
``(A) In general.--In the case of any building with respect
to which an election is made under paragraph (1), the term
`energy efficient commercial building property' shall not
include any energy efficient building retrofit property with
respect to which a deduction is allowable under this
subsection.
``(B) Certain rules not applicable.--
``(i) In general.--Except as provided in clause (ii),
subsection (d) shall not apply for purposes of this
subsection.
``(ii) Allocation of deduction by certain tax-exempt
entities.--Rules similar to subsection (d)(3) shall apply
for purposes of this subsection.''.
(8) Inflation adjustment.--Section 179D(g) is amended--
(A) by striking ``2020'' and inserting ``2022'',
(B) by striking ``or subsection (d)(1)(A)'', and
(C) by striking ``2019'' and inserting ``2021''.
(b) Application to Real Estate Investment Trust Earnings and
Profits.--Section 312(k)(3)(B) is amended--
(1) by striking ``For purposes of computing the earnings and
profits of a corporation'' and inserting the following:
``(i) In general.--For purposes of computing the
earnings and profits of a corporation, except as provided
in clause (ii)'', and
(2) by adding at the end the following new clause:
``(ii) Special rule.--In the case of a corporation that
is a real estate investment trust, any amount deductible
under section 179D shall be allowed in the year in which
the property giving rise to such deduction is placed in
service (or, in the case of energy efficient building
retrofit property, the year in which the qualifying final
certification is made).''.
(c) Conforming Amendment.--Paragraph (1) of section 179D(d), as
redesignated by subsection (a)(5)(A), is amended by striking ``not
later than the date that is 2 years before the date that construction
of such property begins'' and inserting ``not later than the date that
is 4 years before the date such property is placed in service''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2022.
(2) Alternative deduction for energy efficient building
retrofit property.--Subsection (f) of section 179D of the Internal
Revenue Code of 1986 (as amended by this section), and any other
provision of such section solely for purposes of applying such
subsection, shall apply to property placed in service after
December 31, 2022 (in taxable years ending after such date) if such
property is placed in service pursuant to qualified retrofit plan
(within the meaning of such section) established after such date.
SEC. 13304. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW ENERGY
EFFICIENT HOME CREDIT.
(a) Extension of Credit.--Section 45L(g) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2032''.
(b) Increase in Credit Amounts.--Paragraph (2) of section 45L(a) is
amended to read as follows:
``(2) Applicable amount.--For purposes of paragraph (1), the
applicable amount is an amount equal to--
``(A) in the case of a dwelling unit which is eligible to
participate in the Energy Star Residential New Construction
Program or the Energy Star Manufactured New Homes program--
``(i) which meets the requirements of subsection
(c)(1)(A) (and which does not meet the requirements of
subsection (c)(1)(B)), $2,500, and
``(ii) which meets the requirements of subsection
(c)(1)(B), $5,000, and
``(B) in the case of a dwelling unit which is part of a
building eligible to participate in the Energy Star Multifamily
New Construction Program--
``(i) which meets the requirements of subsection
(c)(1)(A) (and which does not meet the requirements of
subsection (c)(1)(B)), $500, and
``(ii) which meets the requirements of subsection
(c)(1)(B), $1,000.''.
(c) Modification of Energy Saving Requirements.--Section 45L(c) is
amended to read as follows:
``(c) Energy Saving Requirements.--
``(1) In general.--
``(A) In general.--A dwelling unit meets the requirements
of this subparagraph if such dwelling unit meets the
requirements of paragraph (2) or (3) (whichever is applicable).
``(B) Zero energy ready home program.--A dwelling unit
meets the requirements of this subparagraph if such dwelling
unit is certified as a zero energy ready home under the zero
energy ready home program of the Department of Energy as in
effect on January 1, 2023 (or any successor program determined
by the Secretary).
``(2) Single-family home requirements.--A dwelling unit meets
the requirements of this paragraph if--
``(A) such dwelling unit meets--
``(i)(I) in the case of a dwelling unit acquired before
January 1, 2025, the Energy Star Single-Family New Homes
National Program Requirements 3.1, or
``(II) in the case of a dwelling unit acquired after
December 31, 2024, the Energy Star Single-Family New Homes
National Program Requirements 3.2, and
``(ii) the most recent Energy Star Single-Family New
Homes Program Requirements applicable to the location of
such dwelling unit (as in effect on the latter of January
1, 2023, or January 1 of two calendar years prior to the
date the dwelling unit was acquired), or
``(B) such dwelling unit meets the most recent Energy Star
Manufactured Home National program requirements as in effect on
the latter of January 1, 2023, or January 1 of two calendar
years prior to the date such dwelling unit is acquired.
``(3) Multi-family home requirements.--A dwelling unit meets
the requirements of this paragraph if--
``(A) such dwelling unit meets the most recent Energy Star
Multifamily New Construction National Program Requirements (as
in effect on either January 1, 2023, or January 1 of three
calendar years prior to the date the dwelling was acquired,
whichever is later), and
``(B) such dwelling unit meets the most recent Energy Star
Multifamily New Construction Regional Program Requirements
applicable to the location of such dwelling unit (as in effect
on either January 1, 2023, or January 1 of three calendar years
prior to the date the dwelling was acquired, whichever is
later).''.
(d) Prevailing Wage Requirement.--Section 45L is amended by
redesignating subsection (g) as subsection (h) and by inserting after
subsection (f) the following new subsection:
``(g) Prevailing Wage Requirement.--
``(1) In general.--In the case of a qualifying residence
described in subsection (a)(2)(B) meeting the prevailing wage
requirements of paragraph (2)(A), the credit amount allowed with
respect to such residence shall be--
``(A) $2,500 in the case of a residence which meets the
requirements of subparagraph (A) of subsection (c)(1) (and
which does not meet the requirements of subparagraph (B) of
such subsection), and
``(B) $5,000 in the case of a residence which meets the
requirements of subsection (c)(1)(B).
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified residence are that
the taxpayer shall ensure that any laborers and mechanics
employed by the taxpayer or any contractor or subcontractor in
the construction of such residence shall be paid wages at rates
not less than the prevailing rates for construction,
alteration, or repair of a similar character in the locality in
which such residence is located as most recently determined by
the Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(3) Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines necessary
to carry out the purposes of this subsection, including regulations
or other guidance which provides for requirements for recordkeeping
or information reporting for purposes of administering the
requirements of this subsection.''.
(e) Basis Adjustment.--Section 45L(e) is amended by inserting after
the first sentence the following: ``This subsection shall not apply for
purposes of determining the adjusted basis of any building under
section 42.''.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to dwelling units
acquired after December 31, 2022.
(2) Extension of credit.--The amendments made by subsection (a)
shall apply to dwelling units acquired after December 31, 2021.
PART 4--CLEAN VEHICLES
SEC. 13401. CLEAN VEHICLE CREDIT.
(a) Per Vehicle Dollar Limitation.--Section 30D(b) is amended by
striking paragraphs (2) and (3) and inserting the following:
``(2) Critical minerals.--In the case of a vehicle with respect
to which the requirement described in subsection (e)(1)(A) is
satisfied, the amount determined under this paragraph is $3,750.
``(3) Battery components.--In the case of a vehicle with
respect to which the requirement described in subsection (e)(2)(A)
is satisfied, the amount determined under this paragraph is
$3,750.''.
(b) Final Assembly.--Section 30D(d) is amended--
(1) in paragraph (1)--
(A) in subparagraph (E), by striking ``and'' at the end,
(B) in subparagraph (F)(ii), by striking the period at the
end and inserting ``, and'', and
(C) by adding at the end the following:
``(G) the final assembly of which occurs within North
America.'',
(2) by adding at the end the following:
``(5) Final assembly.--For purposes of paragraph (1)(G), the
term `final assembly' means the process by which a manufacturer
produces a new clean vehicle at, or through the use of, a plant,
factory, or other place from which the vehicle is delivered to a
dealer or importer with all component parts necessary for the
mechanical operation of the vehicle included with the vehicle,
whether or not the component parts are permanently installed in or
on the vehicle.''.
(c) Definition of New Clean Vehicle.--
(1) In general.--Section 30D(d), as amended by the preceding
provisions of this section, is amended--
(A) in the heading, by striking ``Qualified Plug-in
Electric Drive Motor'' and inserting ``Clean'',
(B) in paragraph (1)--
(i) in the matter preceding subparagraph (A), by
striking ``qualified plug-in electric drive motor'' and
inserting ``clean'',
(ii) in subparagraph (C), by inserting ``qualified''
before ``manufacturer'',
(iii) in subparagraph (F)--
(I) in clause (i), by striking ``4'' and inserting
``7'', and
(II) in clause (ii), by striking ``and'' at the
end,
(iv) in subparagraph (G), by striking the period at the
end and inserting ``, and'', and
(v) by adding at the end the following:
``(H) for which the person who sells any vehicle to the
taxpayer furnishes a report to the taxpayer and to the
Secretary, at such time and in such manner as the Secretary
shall provide, containing--
``(i) the name and taxpayer identification number of
the taxpayer,
``(ii) the vehicle identification number of the
vehicle, unless, in accordance with any applicable rules
promulgated by the Secretary of Transportation, the vehicle
is not assigned such a number,
``(iii) the battery capacity of the vehicle,
``(iv) verification that original use of the vehicle
commences with the taxpayer, and
``(v) the maximum credit under this section allowable
to the taxpayer with respect to the vehicle.'',
(C) in paragraph (3)--
(i) in the heading, by striking ``Manufacturer'' and
inserting ``Qualified manufacturer'',
(ii) by striking ``The term `manufacturer' has the
meaning given such term in'' and inserting ``The term
`qualified manufacturer' means any manufacturer (within the
meaning of the'', and
(iii) by inserting ``) which enters into a written
agreement with the Secretary under which such manufacturer
agrees to make periodic written reports to the Secretary
(at such times and in such manner as the Secretary may
provide) providing vehicle identification numbers and such
other information related to each vehicle manufactured by
such manufacturer as the Secretary may require'' before the
period at the end, and
(D) by adding at the end the following:
``(6) New qualified fuel cell motor vehicle.--For purposes of
this section, the term `new clean vehicle' shall include any new
qualified fuel cell motor vehicle (as defined in section 30B(b)(3))
which meets the requirements under subparagraphs (G) and (H) of
paragraph (1).''.
(2) Conforming amendments.--Section 30D is amended--
(A) in subsection (a), by striking ``new qualified plug-in
electric drive motor vehicle'' and inserting ``new clean
vehicle'', and
(B) in subsection (b)(1), by striking ``new qualified plug-
in electric drive motor vehicle'' and inserting ``new clean
vehicle''.
(d) Elimination of Limitation on Number of Vehicles Eligible for
Credit.--Section 30D is amended by striking subsection (e).
(e) Critical Mineral and Battery Component Requirements.--
(1) In general.--Section 30D, as amended by the preceding
provisions of this section, is amended by inserting after
subsection (d) the following:
``(e) Critical Mineral and Battery Component Requirements.--
``(1) Critical minerals requirement.--
``(A) In general.--The requirement described in this
subparagraph with respect to a vehicle is that, with respect to
the battery from which the electric motor of such vehicle draws
electricity, the percentage of the value of the applicable
critical minerals (as defined in section 45X(c)(6)) contained
in such battery that were--
``(i) extracted or processed--
``(I) in the United States, or
``(II) in any country with which the United States
has a free trade agreement in effect, or
``(ii) recycled in North America,
is equal to or greater than the applicable percentage (as
certified by the qualified manufacturer, in such form or manner
as prescribed by the Secretary).
``(B) Applicable percentage.--For purposes of subparagraph
(A), the applicable percentage shall be--
``(i) in the case of a vehicle placed in service after
the date on which the proposed guidance described in
paragraph (3)(B) is issued by the Secretary and before
January 1, 2024, 40 percent,
``(ii) in the case of a vehicle placed in service
during calendar year 2024, 50 percent,
``(iii) in the case of a vehicle placed in service
during calendar year 2025, 60 percent,
``(iv) in the case of a vehicle placed in service
during calendar year 2026, 70 percent, and
``(v) in the case of a vehicle placed in service after
December 31, 2026, 80 percent.
``(2) Battery components.--
``(A) In general.--The requirement described in this
subparagraph with respect to a vehicle is that, with respect to
the battery from which the electric motor of such vehicle draws
electricity, the percentage of the value of the components
contained in such battery that were manufactured or assembled
in North America is equal to or greater than the applicable
percentage (as certified by the qualified manufacturer, in such
form or manner as prescribed by the Secretary).
``(B) Applicable percentage.--For purposes of subparagraph
(A), the applicable percentage shall be--
``(i) in the case of a vehicle placed in service after
the date on which the proposed guidance described in
paragraph (3)(B) is issued by the Secretary and before
January 1, 2024, 50 percent,
``(ii) in the case of a vehicle placed in service
during calendar year 2024 or 2025, 60 percent,
``(iii) in the case of a vehicle placed in service
during calendar year 2026, 70 percent,
``(iv) in the case of a vehicle placed in service
during calendar year 2027, 80 percent,
``(v) in the case of a vehicle placed in service during
calendar year 2028, 90 percent,
``(vi) in the case of a vehicle placed in service after
December 31, 2028, 100 percent.
``(3) Regulations and guidance.--
``(A) In general.--The Secretary shall issue such
regulations or other guidance as the Secretary determines
necessary to carry out the purposes of this subsection,
including regulations or other guidance which provides for
requirements for recordkeeping or information reporting for
purposes of administering the requirements of this subsection.
``(B) Deadline for proposed guidance.--Not later than
December 31, 2022, the Secretary shall issue proposed guidance
with respect to the requirements under this subsection.''.
(2) Excluded entities.--Section 30D(d), as amended by the
preceding provisions of this section, is amended by adding at the
end the following:
``(7) Excluded entities.--For purposes of this section, the
term `new clean vehicle' shall not include--
``(A) any vehicle placed in service after December 31,
2024, with respect to which any of the applicable critical
minerals contained in the battery of such vehicle (as described
in subsection (e)(1)(A)) were extracted, processed, or recycled
by a foreign entity of concern (as defined in section
40207(a)(5) of the Infrastructure Investment and Jobs Act (42
U.S.C. 18741(a)(5))), or
``(B) any vehicle placed in service after December 31,
2023, with respect to which any of the components contained in
the battery of such vehicle (as described in subsection
(e)(2)(A)) were manufactured or assembled by a foreign entity
of concern (as so defined).''.
(f) Special Rules.--Section 30D(f) is amended by adding at the end
the following:
``(8) One credit per vehicle.--In the case of any vehicle, the
credit described in subsection (a) shall only be allowed once with
respect to such vehicle, as determined based upon the vehicle
identification number of such vehicle.
``(9) VIN requirement.--No credit shall be allowed under this
section with respect to any vehicle unless the taxpayer includes
the vehicle identification number of such vehicle on the return of
tax for the taxable year.
``(10) Limitation based on modified adjusted gross income.--
``(A) In general.--No credit shall be allowed under
subsection (a) for any taxable year if--
``(i) the lesser of--
``(I) the modified adjusted gross income of the
taxpayer for such taxable year, or
``(II) the modified adjusted gross income of the
taxpayer for the preceding taxable year, exceeds
``(ii) the threshold amount.
``(B) Threshold amount.--For purposes of subparagraph
(A)(ii), the threshold amount shall be--
``(i) in the case of a joint return or a surviving
spouse (as defined in section 2(a)), $300,000,
``(ii) in the case of a head of household (as defined
in section 2(b)), $225,000, and
``(iii) in the case of a taxpayer not described in
clause (i) or (ii), $150,000.
``(C) Modified adjusted gross income.--For purposes of this
paragraph, the term `modified adjusted gross income' means
adjusted gross income increased by any amount excluded from
gross income under section 911, 931, or 933.
``(11) Manufacturer's suggested retail price limitation.--
``(A) In general.--No credit shall be allowed under
subsection (a) for a vehicle with a manufacturer's suggested
retail price in excess of the applicable limitation.
``(B) Applicable limitation.--For purposes of subparagraph
(A), the applicable limitation for each vehicle classification
is as follows:
``(i) Vans.--In the case of a van, $80,000.
``(ii) Sport utility vehicles.--In the case of a sport
utility vehicle, $80,000.
``(iii) Pickup trucks.--In the case of a pickup truck,
$80,000.
``(iv) Other.--In the case of any other vehicle,
$55,000.
``(C) Regulations and guidance.--For purposes of this
paragraph, the Secretary shall prescribe such regulations or
other guidance as the Secretary determines necessary for
determining vehicle classifications using criteria similar to
that employed by the Environmental Protection Agency and the
Department of the Energy to determine size and class of
vehicles.''.
(g) Transfer of Credit.--
(1) In general.--Section 30D is amended by striking subsection
(g) and inserting the following:
``(g) Transfer of Credit.--
``(1) In general.--Subject to such regulations or other
guidance as the Secretary determines necessary, if the taxpayer who
acquires a new clean vehicle elects the application of this
subsection with respect to such vehicle, the credit which would
(but for this subsection) be allowed to such taxpayer with respect
to such vehicle shall be allowed to the eligible entity specified
in such election (and not to such taxpayer).
``(2) Eligible entity.--For purposes of this subsection, the
term `eligible entity' means, with respect to the vehicle for which
the credit is allowed under subsection (a), the dealer which sold
such vehicle to the taxpayer and has--
``(A) subject to paragraph (4), registered with the
Secretary for purposes of this paragraph, at such time, and in
such form and manner, as the Secretary may prescribe,
``(B) prior to the election described in paragraph (1) and
not later than at the time of such sale, disclosed to the
taxpayer purchasing such vehicle--
``(i) the manufacturer's suggested retail price,
``(ii) the value of the credit allowed and any other
incentive available for the purchase of such vehicle, and
``(iii) the amount provided by the dealer to such
taxpayer as a condition of the election described in
paragraph (1),
``(C) not later than at the time of such sale, made payment
to such taxpayer (whether in cash or in the form of a partial
payment or down payment for the purchase of such vehicle) in an
amount equal to the credit otherwise allowable to such
taxpayer, and
``(D) with respect to any incentive otherwise available for
the purchase of a vehicle for which a credit is allowed under
this section, including any incentive in the form of a rebate
or discount provided by the dealer or manufacturer, ensured
that--
``(i) the availability or use of such incentive shall
not limit the ability of a taxpayer to make an election
described in paragraph (1), and
``(ii) such election shall not limit the value or use
of such incentive.
``(3) Timing.--An election described in paragraph (1) shall be
made by the taxpayer not later than the date on which the vehicle
for which the credit is allowed under subsection (a) is purchased.
``(4) Revocation of registration.--Upon determination by the
Secretary that a dealer has failed to comply with the requirements
described in paragraph (2), the Secretary may revoke the
registration (as described in subparagraph (A) of such paragraph)
of such dealer.
``(5) Tax treatment of payments.--With respect to any payment
described in paragraph (2)(C), such payment--
``(A) shall not be includible in the gross income of the
taxpayer, and
``(B) with respect to the dealer, shall not be deductible
under this title.
``(6) Application of certain other requirements.--In the case
of any election under paragraph (1) with respect to any vehicle--
``(A) the requirements of paragraphs (1) and (2) of
subsection (f) shall apply to the taxpayer who acquired the
vehicle in the same manner as if the credit determined under
this section with respect to such vehicle were allowed to such
taxpayer,
``(B) paragraph (6) of such subsection shall not apply, and
``(C) the requirement of paragraph (9) of such subsection
(f) shall be treated as satisfied if the eligible entity
provides the vehicle identification number of such vehicle to
the Secretary in such manner as the Secretary may provide.
``(7) Advance payment to registered dealers.--
``(A) In general.--The Secretary shall establish a program
to make advance payments to any eligible entity in an amount
equal to the cumulative amount of the credits allowed under
subsection (a) with respect to any vehicles sold by such entity
for which an election described in paragraph (1) has been made.
``(B) Excessive payments.--Rules similar to the rules of
section 6417(d)(6) shall apply for purposes of this paragraph.
``(C) Treatment of advance payments.--For purposes of
section 1324 of title 31, United States Code, the payments
under subparagraph (A) shall be treated in the same manner as a
refund due from a credit provision referred to in subsection
(b)(2) of such section.
``(8) Dealer.--For purposes of this subsection, the term
`dealer' means a person licensed by a State, the District of
Columbia, the Commonwealth of Puerto Rico, any other territory or
possession of the United States, an Indian tribal government, or
any Alaska Native Corporation (as defined in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)) to engage
in the sale of vehicles.
``(9) Indian tribal government.--For purposes of this
subsection, the term `Indian tribal government' means the
recognized governing body of any Indian or Alaska Native tribe,
band, nation, pueblo, village, community, component band, or
component reservation, individually identified (including
parenthetically) in the list published most recently as of the date
of enactment of this subsection pursuant to section 104 of the
Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C.
5131).
``(10) Recapture.--In the case of any taxpayer who has made an
election described in paragraph (1) with respect to a new clean
vehicle and received a payment described in paragraph (2)(C) from
an eligible entity, if the credit under subsection (a) would
otherwise (but for this subsection) not be allowable to such
taxpayer pursuant to the application of subsection (f)(10), the tax
imposed on such taxpayer under this chapter for the taxable year in
which such vehicle was placed in service shall be increased by the
amount of the payment received by such taxpayer.''.
(2) Conforming amendments.--Section 30D, as amended by the
preceding provisions of this section, is amended--
(A) in subsection (d)(1)(H) of such section--
(i) in clause (iv), by striking ``and'' at the end,
(ii) in clause (v), by striking the period at the end
and inserting ``, and'', and
(iii) by adding at the end the following:
``(vi) in the case of a taxpayer who makes an election
under subsection (g)(1), any amount described in subsection
(g)(2)(C) which has been provided to such taxpayer.'', and
(B) in subsection (f)--
(i) by striking paragraph (3), and
(ii) in paragraph (8), by inserting ``, including any
vehicle with respect to which the taxpayer elects the
application of subsection (g)'' before the period at the
end.
(h) Termination.--Section 30D is amended by adding at the end the
following:
``(h) Termination.--No credit shall be allowed under this section
with respect to any vehicle placed in service after December 31,
2032.''.
(i) Additional Conforming Amendments.--
(1) The heading of section 30D is amended by striking ``new
qualified plug-in electric drive motor vehicles'' and inserting
``clean vehicle credit''.
(2) Section 30B is amended--
(A) in subsection (h)(8), by striking ``, except that no
benefit shall be recaptured if such property ceases to be
eligible for such credit by reason of conversion to a qualified
plug-in electric drive motor vehicle'', and
(B) by striking subsection (i).
(3) Section 38(b)(30) is amended by striking ``qualified plug-
in electric drive motor'' and inserting ``clean''.
(4) Section 6213(g)(2), as amended by the preceding provisions
of this Act, is amended--
(A) in subparagraph (R), by striking ``and'' at the end,
(B) in subparagraph (S), by striking the period at the end
and inserting ``, and'', and
(C) by inserting after subparagraph (S) the following:
``(T) an omission of a correct vehicle identification
number required under section 30D(f)(9) (relating to credit for
new clean vehicles) to be included on a return.''.
(5) Section 6501(m) is amended by striking ``30D(e)(4)'' and
inserting ``30D(f)(6)''.
(6) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by striking the item relating
to section 30D and inserting after the item relating to section 30C
the following item:
``Sec. 30D. Clean vehicle credit.''.
(j) Gross-up of Direct Spending.--Beginning in fiscal year 2023 and
each fiscal year thereafter, the portion of any credit allowed to an
eligible entity (as defined in section 30D(g)(2) of the Internal
Revenue Code of 1986) pursuant to an election made under section 30D(g)
of the Internal Revenue Code of 1986 that is direct spending shall be
increased by 6.0445 percent.
(k) Effective Dates.--
(1) In general.--Except as provided in paragraphs (2), (3),
(4), and (5), the amendments made by this section shall apply to
vehicles placed in service after December 31, 2022.
(2) Final assembly.--The amendments made by subsection (b)
shall apply to vehicles sold after the date of enactment of this
Act.
(3) Per vehicle dollar limitation and related requirements.--
The amendments made by subsections (a) and (e) shall apply to
vehicles placed in service after the date on which the proposed
guidance described in paragraph (3)(B) of section 30D(e) of the
Internal Revenue Code of 1986 (as added by subsection (e)) is
issued by the Secretary of the Treasury (or the Secretary's
delegate).
(4) Transfer of credit.--The amendments made by subsection (g)
shall apply to vehicles placed in service after December 31, 2023.
(5) Elimination of manufacturer limitation.--The amendment made
by subsection (d) shall apply to vehicles sold after December 31,
2022.
(l) Transition Rule.--Solely for purposes of the application of
section 30D of the Internal Revenue Code of 1986, in the case of a
taxpayer that--
(1) after December 31, 2021, and before the date of enactment
of this Act, purchased, or entered into a written binding contract
to purchase, a new qualified plug-in electric drive motor vehicle
(as defined in section 30D(d)(1) of the Internal Revenue Code of
1986, as in effect on the day before the date of enactment of this
Act), and
(2) placed such vehicle in service on or after the date of
enactment of this Act,
such taxpayer may elect (at such time, and in such form and manner, as
the Secretary of the Treasury, or the Secretary's delegate, may
prescribe) to treat such vehicle as having been placed in service on
the day before the date of enactment of this Act.
SEC. 13402. CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
is amended by inserting after section 25D the following new section:
``SEC. 25E. PREVIOUSLY-OWNED CLEAN VEHICLES.
``(a) Allowance of Credit.--In the case of a qualified buyer who
during a taxable year places in service a previously-owned clean
vehicle, there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the lesser of--
``(1) $4,000, or
``(2) the amount equal to 30 percent of the sale price with
respect to such vehicle.
``(b) Limitation Based on Modified Adjusted Gross Income.--
``(1) In general.--No credit shall be allowed under subsection
(a) for any taxable year if--
``(A) the lesser of--
``(i) the modified adjusted gross income of the
taxpayer for such taxable year, or
``(ii) the modified adjusted gross income of the
taxpayer for the preceding taxable year, exceeds
``(B) the threshold amount.
``(2) Threshold amount.--For purposes of paragraph (1)(B), the
threshold amount shall be--
``(A) in the case of a joint return or a surviving spouse
(as defined in section 2(a)), $150,000,
``(B) in the case of a head of household (as defined in
section 2(b)), $112,500, and
``(C) in the case of a taxpayer not described in
subparagraph (A) or (B), $75,000.
``(3) Modified adjusted gross income.--For purposes of this
subsection, the term `modified adjusted gross income' means
adjusted gross income increased by any amount excluded from gross
income under section 911, 931, or 933.
``(c) Definitions.--For purposes of this section--
``(1) Previously-owned clean vehicle.--The term `previously-
owned clean vehicle' means, with respect to a taxpayer, a motor
vehicle--
``(A) the model year of which is at least 2 years earlier
than the calendar year in which the taxpayer acquires such
vehicle,
``(B) the original use of which commences with a person
other than the taxpayer,
``(C) which is acquired by the taxpayer in a qualified
sale, and
``(D) which--
``(i) meets the requirements of subparagraphs (C), (D),
(E), (F), and (H) (except for clause (iv) thereof) of
section 30D(d)(1), or
``(ii) is a motor vehicle which--
``(I) satisfies the requirements under
subparagraphs (A) and (B) of section 30B(b)(3), and
``(II) has a gross vehicle weight rating of less
than 14,000 pounds.
``(2) Qualified sale.--The term `qualified sale' means a sale
of a motor vehicle--
``(A) by a dealer (as defined in section 30D(g)(8)),
``(B) for a sale price which does not exceed $25,000, and
``(C) which is the first transfer since the date of the
enactment of this section to a qualified buyer other than the
person with whom the original use of such vehicle commenced.
``(3) Qualified buyer.--The term `qualified buyer' means, with
respect to a sale of a motor vehicle, a taxpayer--
``(A) who is an individual,
``(B) who purchases such vehicle for use and not for
resale,
``(C) with respect to whom no deduction is allowable with
respect to another taxpayer under section 151, and
``(D) who has not been allowed a credit under this section
for any sale during the 3-year period ending on the date of the
sale of such vehicle.
``(4) Motor vehicle; capacity.--The terms `motor vehicle' and
`capacity' have the meaning given such terms in paragraphs (2) and
(4) of section 30D(d), respectively.
``(d) VIN Number Requirement.--No credit shall be allowed under
subsection (a) with respect to any vehicle unless the taxpayer includes
the vehicle identification number of such vehicle on the return of tax
for the taxable year.
``(e) Application of Certain Rules.--For purposes of this section,
rules similar to the rules of section 30D(f) (without regard to
paragraph (10) or (11) thereof) shall apply for purposes of this
section.
``(f) Termination.--No credit shall be allowed under this section
with respect to any vehicle acquired after December 31, 2032.''.
(b) Transfer of Credit.--Section 25E, as added by subsection (a),
is amended--
(1) by redesignating subsection (f) as subsection (g), and
(2) by inserting after subsection (e) the following:
``(f) Transfer of Credit.--Rules similar to the rules of section
30D(g) shall apply.''.
(c) Conforming Amendments.--Section 6213(g)(2), as amended by the
preceding provisions of this Act, is amended--
(1) in subparagraph (S), by striking ``and'' at the end,
(2) in subparagraph (T), by striking the period at the end and
inserting ``, and'', and
(3) by inserting after subparagraph (T) the following:
``(U) an omission of a correct vehicle identification
number required under section 25E(d) (relating to credit for
previously-owned clean vehicles) to be included on a return.''.
(d) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 is amended by inserting after the
item relating to section 25D the following new item:
``Sec. 25E. Previously-owned clean vehicles.''.
(e) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to vehicles acquired
after December 31, 2022.
(2) Transfer of credit.--The amendments made by subsection (b)
shall apply to vehicles acquired after December 31, 2023.
SEC. 13403. QUALIFIED COMMERCIAL CLEAN VEHICLES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
adding at the end the following new section:
``SEC. 45W. CREDIT FOR QUALIFIED COMMERCIAL CLEAN VEHICLES.
``(a) In General.--For purposes of section 38, the qualified
commercial clean vehicle credit for any taxable year is an amount equal
to the sum of the credit amounts determined under subsection (b) with
respect to each qualified commercial clean vehicle placed in service by
the taxpayer during the taxable year.
``(b) Per Vehicle Amount.--
``(1) In general.--Subject to paragraph (4), the amount
determined under this subsection with respect to any qualified
commercial clean vehicle shall be equal to the lesser of--
``(A) 15 percent of the basis of such vehicle (30 percent
in the case of a vehicle not powered by a gasoline or diesel
internal combustion engine), or
``(B) the incremental cost of such vehicle.
``(2) Incremental cost.--For purposes of paragraph (1)(B), the
incremental cost of any qualified commercial clean vehicle is an
amount equal to the excess of the purchase price for such vehicle
over such price of a comparable vehicle.
``(3) Comparable vehicle.--For purposes of this subsection, the
term `comparable vehicle' means, with respect to any qualified
commercial clean vehicle, any vehicle which is powered solely by a
gasoline or diesel internal combustion engine and which is
comparable in size and use to such vehicle.
``(4) Limitation.--The amount determined under this subsection
with respect to any qualified commercial clean vehicle shall not
exceed--
``(A) in the case of a vehicle which has a gross vehicle
weight rating of less than 14,000 pounds, $7,500, and
``(B) in the case of a vehicle not described in
subparagraph (A), $40,000.
``(c) Qualified Commercial Clean Vehicle.--For purposes of this
section, the term `qualified commercial clean vehicle' means any
vehicle which--
``(1) meets the requirements of section 30D(d)(1)(C) and is
acquired for use or lease by the taxpayer and not for resale,
``(2) either--
``(A) meets the requirements of subparagraph (D) of section
30D(d)(1) and is manufactured primarily for use on public
streets, roads, and highways (not including a vehicle operated
exclusively on a rail or rails), or
``(B) is mobile machinery, as defined in section 4053(8)
(including vehicles that are not designed to perform a function
of transporting a load over the public highways),
``(3) either--
``(A) is propelled to a significant extent by an electric
motor which draws electricity from a battery which has a
capacity of not less than 15 kilowatt hours (or, in the case of
a vehicle which has a gross vehicle weight rating of less than
14,000 pounds, 7 kilowatt hours) and is capable of being
recharged from an external source of electricity, or
``(B) is a motor vehicle which satisfies the requirements
under subparagraphs (A) and (B) of section 30B(b)(3), and
``(4) is of a character subject to the allowance for
depreciation.
``(d) Special Rules.--
``(1) In general.--Rules similar to the rules under subsection
(f) of section 30D (without regard to paragraph (10) or (11)
thereof) shall apply for purposes of this section.
``(2) Vehicles placed in service by tax-exempt entities.--
Subsection (c)(4) shall not apply to any vehicle which is not
subject to a lease and which is placed in service by a tax-exempt
entity described in clause (i), (ii), or (iv) of section
168(h)(2)(A).
``(3) No double benefit.--No credit shall be allowed under this
section with respect to any vehicle for which a credit was allowed
under section 30D.
``(e) VIN Number Requirement.--No credit shall be determined under
subsection (a) with respect to any vehicle unless the taxpayer includes
the vehicle identification number of such vehicle on the return of tax
for the taxable year.
``(f) Regulations and Guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines necessary to
carry out the purposes of this section, including regulations or other
guidance relating to determination of the incremental cost of any
qualified commercial clean vehicle.
``(g) Termination.--No credit shall be determined under this
section with respect to any vehicle acquired after December 31,
2032.''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by the preceding provisions of
this Act, is amended--
(A) in paragraph (35), by striking ``plus'' at the end,
(B) in paragraph (36), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(37) the qualified commercial clean vehicle credit determined
under section 45W.''.
(2) Section 6213(g)(2), as amended by the preceding provisions
of this Act, is amended--
(A) in subparagraph (T), by striking ``and'' at the end,
(B) in subparagraph (U), by striking the period at the end
and inserting ``, and'', and
(C) by inserting after subparagraph (U) the following:
``(V) an omission of a correct vehicle identification
number required under section 45W(e) (relating to commercial
clean vehicle credit) to be included on a return.''.
(3) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding provisions
of this Act, is amended by adding at the end the following new
item:
``Sec. 45W. Qualified commercial clean vehicle credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to vehicles acquired after December 31, 2022.
SEC. 13404. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.
(a) In General.--Section 30C(g) is amended by striking ``December
31, 2021'' and inserting ``December 31, 2032''.
(b) Credit for Property of a Character Subject to Depreciation.--
(1) In general.--Section 30C(a) is amended by inserting ``(6
percent in the case of property of a character subject to
depreciation)'' after ``30 percent''.
(2) Modification of credit limitation.--Subsection (b) of
section 30C is amended--
(A) in the matter preceding paragraph (1)--
(i) by striking ``with respect to all'' and inserting
``with respect to any single item of'', and
(ii) by striking ``at a location'', and
(B) in paragraph (1), by striking ``$30,000 in the case of
a property'' and inserting ``$100,000 in the case of any such
item of property''.
(3) Bidirectional charging equipment included as qualified
alternative fuel vehicle refueling property.--Section 30C(c) is
amended to read as follows:
``(c) Qualified Alternative Fuel Vehicle Refueling Property.--For
purposes of this section--
``(1) In general.--The term `qualified alternative fuel vehicle
refueling property' has the same meaning as the term `qualified
clean-fuel vehicle refueling property' would have under section
179A if--
``(A) paragraph (1) of section 179A(d) did not apply to
property installed on property which is used as the principal
residence (within the meaning of section 121) of the taxpayer,
and
``(B) only the following were treated as clean-burning
fuels for purposes of section 179A(d):
``(i) Any fuel at least 85 percent of the volume of
which consists of one or more of the following: ethanol,
natural gas, compressed natural gas, liquified natural gas,
liquefied petroleum gas, or hydrogen.
``(ii) Any mixture--
``(I) which consists of two or more of the
following: biodiesel (as defined in section 40A(d)(1)),
diesel fuel (as defined in section 4083(a)(3)), or
kerosene, and
``(II) at least 20 percent of the volume of which
consists of biodiesel (as so defined) determined
without regard to any kerosene in such mixture.
``(iii) Electricity.
``(2) Bidirectional charging equipment.--Property shall not
fail to be treated as qualified alternative fuel vehicle refueling
property solely because such property--
``(A) is capable of charging the battery of a motor vehicle
propelled by electricity, and
``(B) allows discharging electricity from such battery to
an electric load external to such motor vehicle.''.
(c) Certain Electric Charging Stations Included as Qualified
Alternative Fuel Vehicle Refueling Property.--Section 30C is amended by
redesignating subsections (f) and (g) as subsections (g) and (h),
respectively, and by inserting after subsection (e) the following:
``(f) Special Rule for Electric Charging Stations for Certain
Vehicles With 2 or 3 Wheels.--For purposes of this section--
``(1) In general.--The term `qualified alternative fuel vehicle
refueling property' includes any property described in subsection
(c) for the recharging of a motor vehicle described in paragraph
(2), but only if such property--
``(A) meets the requirements of subsection (a)(2), and
``(B) is of a character subject to depreciation.
``(2) Motor vehicle.--A motor vehicle is described in this
paragraph if the motor vehicle--
``(A) is manufactured primarily for use on public streets,
roads, or highways (not including a vehicle operated
exclusively on a rail or rails),
``(B) has 2 or 3 wheels, and
``(C) is propelled by electricity.''.
(d) Wage and Apprenticeship Requirements.--Section 30C, as amended
by this section, is further amended by redesignating subsections (g)
and (h) as subsections (h) and (i) and by inserting after subsection
(f) the following new subsection:
``(g) Wage and Apprenticeship Requirements.--
``(1) Increased credit amount.--
``(A) In general.--In the case of any qualified alternative
fuel vehicle refueling project which satisfies the requirements
of subparagraph (C), the amount of the credit determined under
subsection (a) for any qualified alternative fuel vehicle
refueling property of a character subject to an allowance for
depreciation which is part of such project shall be equal to
such amount (determined without regard to this sentence)
multiplied by 5.
``(B) Qualified alternative fuel vehicle refueling
project.--For purposes of this subsection, the term `qualified
alternative fuel vehicle refueling project' means a project
consisting of one or more properties that are part of a single
project.
``(C) Project requirements.--A project meets the
requirements of this subparagraph if it is one of the
following:
``(i) A project the construction of which begins prior
to the date that is 60 days after the Secretary publishes
guidance with respect to the requirements of paragraphs
(2)(A) and (3).
``(ii) A project which satisfies the requirements of
paragraphs (2)(A) and (3).
``(2) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to any qualified alternative fuel
vehicle refueling project are that the taxpayer shall ensure
that any laborers and mechanics employed by the taxpayer or any
contractor or subcontractor in the construction of any
qualified alternative fuel vehicle refueling property which is
part of such project shall be paid wages at rates not less than
the prevailing rates for construction, alteration, or repair of
a similar character in the locality in which such project is
located as most recently determined by the Secretary of Labor,
in accordance with subchapter IV of chapter 31 of title 40,
United States Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(3) Apprenticeship requirements.--Rules similar to the rules
of section 45(b)(8) shall apply.
``(4) Regulations and guidance.--The Secretary shall issue such
regulations or other guidance as the Secretary determines necessary
to carry out the purposes of this subsection, including regulations
or other guidance which provides for requirements for recordkeeping
or information reporting for purposes of administering the
requirements of this subsection.''.
(e) Eligible Census Tracts.--Subsection (c) of section 30C, as
amended by subsection (b)(3), is amended by adding at the end the
following:
``(3) Property required to be located in eligible census
tracts.--
``(A) In general.--Property shall not be treated as
qualified alternative fuel vehicle refueling property unless
such property is placed in service in an eligible census tract.
``(B) Eligible census tract.--
``(i) In general.--For purposes of this paragraph, the
term `eligible census tract' means any population census
tract which--
``(I) is described in section 45D(e), or
``(II) is not an urban area.
``(ii) Urban area.--For purposes of clause (i)(II), the
term `urban area' means a census tract (as defined by the
Bureau of the Census) which, according to the most recent
decennial census, has been designated as an urban area by
the Secretary of Commerce.''.
(f) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property placed in
service after December 31, 2022.
(2) Extension.--The amendments made by subsection (a) shall
apply to property placed in service after December 31, 2021.
PART 5--INVESTMENT IN CLEAN ENERGY MANUFACTURING AND ENERGY SECURITY
SEC. 13501. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT.
(a) Extension of Credit.--Section 48C is amended by redesignating
subsection (e) as subsection (f) and by inserting after subsection (d)
the following new subsection:
``(e) Additional Allocations.--
``(1) In general.--Not later than 180 days after the date of
enactment of this subsection, the Secretary shall establish a
program to consider and award certifications for qualified
investments eligible for credits under this section to qualifying
advanced energy project sponsors.
``(2) Limitation.--The total amount of credits which may be
allocated under the program established under paragraph (1) shall
not exceed $10,000,000,000, of which not greater than
$6,000,000,000 may be allocated to qualified investments which are
not located within a census tract which--
``(A) is described in clause (iii) of section 45(b)(11)(B),
and
``(B) prior to the date of enactment of this subsection,
had no project which received a certification and allocation of
credits under subsection (d).
``(3) Certifications.--
``(A) Application requirement.--Each applicant for
certification under this subsection shall submit an application
at such time and containing such information as the Secretary
may require.
``(B) Time to meet criteria for certification.--Each
applicant for certification shall have 2 years from the date of
acceptance by the Secretary of the application during which to
provide to the Secretary evidence that the requirements of the
certification have been met.
``(C) Period of issuance.--An applicant which receives a
certification shall have 2 years from the date of issuance of
the certification in order to place the project in service and
to notify the Secretary that such project has been so placed in
service, and if such project is not placed in service by that
time period, then the certification shall no longer be valid.
If any certification is revoked under this subparagraph, the
amount of the limitation under paragraph (2) shall be increased
by the amount of the credit with respect to such revoked
certification.
``(D) Location of project.--In the case of an applicant
which receives a certification, if the Secretary determines
that the project has been placed in service at a location which
is materially different than the location specified in the
application for such project, the certification shall no longer
be valid.
``(4) Credit rate conditioned upon wage and apprenticeship
requirements.--
``(A) Base rate.--For purposes of allocations under this
subsection, the amount of the credit determined under
subsection (a) shall be determined by substituting `6 percent'
for `30 percent'.
``(B) Alternative rate.--In the case of any project which
satisfies the requirements of paragraphs (5)(A) and (6),
subparagraph (A) shall not apply.
``(5) Prevailing wage requirements.--
``(A) In general.--The requirements described in this
subparagraph with respect to a project are that the taxpayer
shall ensure that any laborers and mechanics employed by the
taxpayer or any contractor or subcontractor in the re-
equipping, expansion, or establishment of a manufacturing
facility shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or repair of a
similar character in the locality in which such project is
located as most recently determined by the Secretary of Labor,
in accordance with subchapter IV of chapter 31 of title 40,
United States Code.
``(B) Correction and penalty related to failure to satisfy
wage requirements.--Rules similar to the rules of section
45(b)(7)(B) shall apply.
``(6) Apprenticeship requirements.--Rules similar to the rules
of section 45(b)(8) shall apply.
``(7) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly disclose the
identity of the applicant and the amount of the credit with respect
to such applicant.''.
(b) Modification of Qualifying Advanced Energy Projects.--Section
48C(c)(1)(A) is amended--
(1) by inserting ``, any portion of the qualified investment of
which is certified by the Secretary under subsection (e) as
eligible for a credit under this section'' after ``means a
project'',
(2) in clause (i)--
(A) by striking ``a manufacturing facility for the
production of'' and inserting ``an industrial or manufacturing
facility for the production or recycling of'',
(B) in clause (I), by inserting ``water,'' after ``sun,'',
(C) in clause (II), by striking ``an energy storage system
for use with electric or hybrid-electric motor vehicles'' and
inserting ``energy storage systems and components'',
(D) in clause (III), by striking ``grids to support the
transmission of intermittent sources of renewable energy,
including storage of such energy'' and inserting ``grid
modernization equipment or components'',
(E) in subclause (IV), by striking ``and sequester carbon
dioxide emissions'' and inserting ``, remove, use, or sequester
carbon oxide emissions'',
(F) by striking subclause (V) and inserting the following:
``(V) equipment designed to refine, electrolyze, or
blend any fuel, chemical, or product which is--
``(aa) renewable, or
``(bb) low-carbon and low-emission,'',
(G) by striking subclause (VI),
(H) by redesignating subclause (VII) as subclause (IX),
(I) by inserting after subclause (V) the following new
subclauses:
``(VI) property designed to produce energy
conservation technologies (including residential,
commercial, and industrial applications),
``(VII) light-, medium-, or heavy-duty electric or
fuel cell vehicles, as well as--
``(aa) technologies, components, or materials
for such vehicles, and
``(bb) associated charging or refueling
infrastructure,
``(VIII) hybrid vehicles with a gross vehicle
weight rating of not less than 14,000 pounds, as well
as technologies, components, or materials for such
vehicles, or'', and
(J) in subclause (IX), as so redesignated, by striking
``and'' at the end, and
(3) by striking clause (ii) and inserting the following:
``(ii) which re-equips an industrial or manufacturing
facility with equipment designed to reduce greenhouse gas
emissions by at least 20 percent through the installation
of--
``(I) low- or zero-carbon process heat systems,
``(II) carbon capture, transport, utilization and
storage systems,
``(III) energy efficiency and reduction in waste
from industrial processes, or
``(IV) any other industrial technology designed to
reduce greenhouse gas emissions, as determined by the
Secretary, or
``(iii) which re-equips, expands, or establishes an
industrial facility for the processing, refining, or
recycling of critical materials (as defined in section
7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)).''.
(c) Conforming Amendment.--Subparagraph (A) of section 48C(c)(2) is
amended to read as follows:
``(A) which is necessary for--
``(i) the production or recycling of property described
in clause (i) of paragraph (1)(A),
``(ii) re-equipping an industrial or manufacturing
facility described in clause (ii) of such paragraph, or
``(iii) re-equipping, expanding, or establishing an
industrial facility described in clause (iii) of such
paragraph,''.
(d) Denial of Double Benefit.--48C(f), as redesignated by this
section, is amended by striking ``or 48B'' and inserting ``48B, 48E,
45Q, or 45V''.
(e) Effective Date.--The amendments made by this section shall take
effect on January 1, 2023.
SEC. 13502. ADVANCED MANUFACTURING PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
adding at the end the following new section:
``SEC. 45X. ADVANCED MANUFACTURING PRODUCTION CREDIT.
``(a) In General.--
``(1) Allowance of credit.--For purposes of section 38, the
advanced manufacturing production credit for any taxable year is an
amount equal to the sum of the credit amounts determined under
subsection (b) with respect to each eligible component which is--
``(A) produced by the taxpayer, and
``(B) during the taxable year, sold by such taxpayer to an
unrelated person.
``(2) Production and sale must be in trade or business.--Any
eligible component produced and sold by the taxpayer shall be taken
into account only if the production and sale described in paragraph
(1) is in a trade or business of the taxpayer.
``(3) Unrelated person.--
``(A) In general.--For purposes of this subsection, a
taxpayer shall be treated as selling components to an unrelated
person if such component is sold to such person by a person
related to the taxpayer.
``(B) Election.--
``(i) In general.--At the election of the taxpayer (in
such form and manner as the Secretary may prescribe), a
sale of components by such taxpayer to a related person
shall be deemed to have been made to an unrelated person.
``(ii) Requirement.--As a condition of, and prior to,
any election described in clause (i), the Secretary may
require such information or registration as the Secretary
deems necessary for purposes of preventing duplication,
fraud, or any improper or excessive amount determined under
paragraph (1).
``(b) Credit Amount.--
``(1) In general.--Subject to paragraph (3), the amount
determined under this subsection with respect to any eligible
component, including any eligible component it incorporates, shall
be equal to--
``(A) in the case of a thin film photovoltaic cell or a
crystalline photovoltaic cell, an amount equal to the product
of--
``(i) 4 cents, multiplied by
``(ii) the capacity of such cell (expressed on a per
direct current watt basis),
``(B) in the case of a photovoltaic wafer, $12 per square
meter,
``(C) in the case of solar grade polysilicon, $3 per
kilogram,
``(D) in the case of a polymeric backsheet, 40 cents per
square meter,
``(E) in the case of a solar module, an amount equal to the
product of--
``(i) 7 cents, multiplied by
``(ii) the capacity of such module (expressed on a per
direct current watt basis),
``(F) in the case of a wind energy component--
``(i) if such component is a related offshore wind
vessel, an amount equal to 10 percent of the sales price of
such vessel, and
``(ii) if such component is not described in clause
(i), an amount equal to the product of--
``(I) the applicable amount with respect to such
component (as determined under paragraph (2)(A)),
multiplied by
``(II) the total rated capacity (expressed on a per
watt basis) of the completed wind turbine for which
such component is designed,
``(G) in the case of a torque tube, 87 cents per kilogram,
``(H) in the case of a structural fastener, $2.28 per
kilogram,
``(I) in the case of an inverter, an amount equal to the
product of--
``(i) the applicable amount with respect to such
inverter (as determined under paragraph (2)(B)), multiplied
by
``(ii) the capacity of such inverter (expressed on a
per alternating current watt basis),
``(J) in the case of electrode active materials, an amount
equal to 10 percent of the costs incurred by the taxpayer with
respect to production of such materials,
``(K) in the case of a battery cell, an amount equal to the
product of--
``(i) $35, multiplied by
``(ii) subject to paragraph (4), the capacity of such
battery cell (expressed on a kilowatt-hour basis),
``(L) in the case of a battery module, an amount equal to
the product of--
``(i) $10 (or, in the case of a battery module which
does not use battery cells, $45), multiplied by
``(ii) subject to paragraph (4), the capacity of such
battery module (expressed on a kilowatt-hour basis), and
``(M) in the case of any applicable critical mineral, an
amount equal to 10 percent of the costs incurred by the
taxpayer with respect to production of such mineral.
``(2) Applicable amounts.--
``(A) Wind energy components.--For purposes of paragraph
(1)(F)(ii), the applicable amount with respect to any wind
energy component shall be--
``(i) in the case of a blade, 2 cents,
``(ii) in the case of a nacelle, 5 cents,
``(iii) in the case of a tower, 3 cents, and
``(iv) in the case of an offshore wind foundation--
``(I) which uses a fixed platform, 2 cents, or
``(II) which uses a floating platform, 4 cents.
``(B) Inverters.--For purposes of paragraph (1)(I), the
applicable amount with respect to any inverter shall be--
``(i) in the case of a central inverter, 0.25 cents,
``(ii) in the case of a utility inverter, 1.5 cents,
``(iii) in the case of a commercial inverter, 2 cents,
``(iv) in the case of a residential inverter, 6.5
cents, and
``(v) in the case of a microinverter or a distributed
wind inverter, 11 cents.
``(3) Phase out.--
``(A) In general.--Subject to subparagraph (C), in the case
of any eligible component sold after December 31, 2029, the
amount determined under this subsection with respect to such
component shall be equal to the product of--
``(i) the amount determined under paragraph (1) with
respect to such component, as determined without regard to
this paragraph, multiplied by
``(ii) the phase out percentage under subparagraph (B).
``(B) Phase out percentage.--The phase out percentage under
this subparagraph is equal to--
``(i) in the case of an eligible component sold during
calendar year 2030, 75 percent,
``(ii) in the case of an eligible component sold during
calendar year 2031, 50 percent,
``(iii) in the case of an eligible component sold
during calendar year 2032, 25 percent,
``(iv) in the case of an eligible component sold after
December 31, 2032, 0 percent.
``(C) Exception.--For purposes of determining the amount
under this subsection with respect to any applicable critical
mineral, this paragraph shall not apply.
``(4) Limitation on capacity of battery cells and battery
modules.--
``(A) In general.--For purposes of subparagraph (K)(ii) or
(L)(ii) of paragraph (1), the capacity determined under either
subparagraph with respect to a battery cell or battery module
shall not exceed a capacity-to-power ratio of 100:1.
``(B) Capacity-to-power ratio.--For purposes of this
paragraph, the term `capacity-to-power ratio' means, with
respect to a battery cell or battery module, the ratio of the
capacity of such cell or module to the maximum discharge amount
of such cell or module.
``(c) Definitions.--For purposes of this section--
``(1) Eligible component.--
``(A) In general.--The term `eligible component' means--
``(i) any solar energy component,
``(ii) any wind energy component,
``(iii) any inverter described in subparagraphs (B)
through (G) of paragraph (2),
``(iv) any qualifying battery component, and
``(v) any applicable critical mineral.
``(B) Application with other credits.--The term `eligible
component' shall not include any property which is produced at
a facility if the basis of any property which is part of such
facility is taken into account for purposes of the credit
allowed under section 48C after the date of the enactment of
this section.
``(2) Inverters.--
``(A) In general.--The term `inverter' means an end product
which is suitable to convert direct current electricity from 1
or more solar modules or certified distributed wind energy
systems into alternating current electricity.
``(B) Central inverter.--The term `central inverter' means
an inverter which is suitable for large utility-scale systems
and has a capacity which is greater than 1,000 kilowatts
(expressed on a per alternating current watt basis).
``(C) Commercial inverter.--The term `commercial inverter'
means an inverter which--
``(i) is suitable for commercial or utility-scale
applications,
``(ii) has a rated output of 208, 480, 600, or 800 volt
three-phase power, and
``(iii) has a capacity which is not less than 20
kilowatts and not greater than 125 kilowatts (expressed on
a per alternating current watt basis).
``(D) Distributed wind inverter.--
``(i) In general.--The term `distributed wind inverter'
means an inverter which--
``(I) is used in a residential or non-residential
system which utilizes 1 or more certified distributed
wind energy systems, and
``(II) has a rated output of not greater than 150
kilowatts.
``(ii) Certified distributed wind energy system.--The
term `certified distributed wind energy system' means a
wind energy system which is certified by an accredited
certification agency to meet Standard 9.1-2009 of the
American Wind Energy Association (including any subsequent
revisions to or modifications of such Standard which have
been approved by the American National Standards
Institute).
``(E) Microinverter.--The term `microinverter' means an
inverter which--
``(i) is suitable to connect with one solar module,
``(ii) has a rated output of--
``(I) 120 or 240 volt single-phase power, or
``(II) 208 or 480 volt three-phase power, and
``(iii) has a capacity which is not greater than 650
watts (expressed on a per alternating current watt basis).
``(F) Residential inverter.--The term `residential
inverter' means an inverter which--
``(i) is suitable for a residence,
``(ii) has a rated output of 120 or 240 volt single-
phase power, and
``(iii) has a capacity which is not greater than 20
kilowatts (expressed on a per alternating current watt
basis).
``(G) Utility inverter.--The term `utility inverter' means
an inverter which--
``(i) is suitable for commercial or utility-scale
systems,
``(ii) has a rated output of not less than 600 volt
three-phase power, and
``(iii) has a capacity which is greater than 125
kilowatts and not greater than 1000 kilowatts (expressed on
a per alternating current watt basis)
``(3) Solar energy component.--
``(A) In general.--The term `solar energy component' means
any of the following:
``(i) Solar modules.
``(ii) Photovoltaic cells.
``(iii) Photovoltaic wafers.
``(iv) Solar grade polysilicon.
``(v) Torque tubes or structural fasteners.
``(vi) Polymeric backsheets.
``(B) Associated definitions.--
``(i) Photovoltaic cell.--The term `photovoltaic cell'
means the smallest semiconductor element of a solar module
which performs the immediate conversion of light into
electricity.
``(ii) Photovoltaic wafer.--The term `photovoltaic
wafer' means a thin slice, sheet, or layer of semiconductor
material of at least 240 square centimeters--
``(I) produced by a single manufacturer either--
``(aa) directly from molten or evaporated solar
grade polysilicon or deposition of solar grade thin
film semiconductor photon absorber layer, or
``(bb) through formation of an ingot from
molten polysilicon and subsequent slicing, and
``(II) which comprises the substrate or absorber
layer of one or more photovoltaic cells.
``(iii) Polymeric backsheet.--The term `polymeric
backsheet' means a sheet on the back of a solar module
which acts as an electric insulator and protects the inner
components of such module from the surrounding environment.
``(iv) Solar grade polysilicon.--The term `solar grade
polysilicon' means silicon which is--
``(I) suitable for use in photovoltaic
manufacturing, and
``(II) purified to a minimum purity of 99.999999
percent silicon by mass.
``(v) Solar module.--The term `solar module' means the
connection and lamination of photovoltaic cells into an
environmentally protected final assembly which is--
``(I) suitable to generate electricity when exposed
to sunlight, and
``(II) ready for installation without an additional
manufacturing process.
``(vi) Solar tracker.--The term `solar tracker' means a
mechanical system that moves solar modules according to the
position of the sun and to increase energy output.
``(vii) Solar tracker components.--
``(I) Torque tube.--The term `torque tube' means a
structural steel support element (including
longitudinal purlins) which--
``(aa) is part of a solar tracker,
``(bb) is of any cross-sectional shape,
``(cc) may be assembled from individually
manufactured segments,
``(dd) spans longitudinally between foundation
posts,
``(ee) supports solar panels and is connected
to a mounting attachment for solar panels (with or
without separate module interface rails), and
``(ff) is rotated by means of a drive system.
``(II) Structural fastener.--The term `structural
fastener' means a component which is used--
``(aa) to connect the mechanical and drive
system components of a solar tracker to the
foundation of such solar tracker,
``(bb) to connect torque tubes to drive
assemblies, or
``(cc) to connect segments of torque tubes to
one another.
``(4) Wind energy component.--
``(A) In general.--The term `wind energy component' means
any of the following:
``(i) Blades.
``(ii) Nacelles.
``(iii) Towers.
``(iv) Offshore wind foundations.
``(v) Related offshore wind vessels.
``(B) Associated definitions.--
``(i) Blade.--The term `blade' means an airfoil-shaped
blade which is responsible for converting wind energy to
low-speed rotational energy.
``(ii) Offshore wind foundation.--The term `offshore
wind foundation' means the component (including transition
piece) which secures an offshore wind tower and any above-
water turbine components to the seafloor using--
``(I) fixed platforms, such as offshore wind
monopiles, jackets, or gravity-based foundations, or
``(II) floating platforms and associated mooring
systems.
``(iii) Nacelle.--The term `nacelle' means the assembly
of the drivetrain and other tower-top components of a wind
turbine (with the exception of the blades and the hub)
within their cover housing.
``(iv) Related offshore wind vessel.--The term `related
offshore wind vessel' means any vessel which is purpose-
built or retrofitted for purposes of the development,
transport, installation, operation, or maintenance of
offshore wind energy components.
``(v) Tower.--The term `tower' means a tubular or
lattice structure which supports the nacelle and rotor of a
wind turbine.
``(5) Qualifying battery component.--
``(A) In general.--The term `qualifying battery component'
means any of the following:
``(i) Electrode active materials.
``(ii) Battery cells.
``(iii) Battery modules.
``(B) Associated definitions.--
``(i) Electrode active material.--The term `electrode
active material' means cathode materials, anode materials,
anode foils, and electrochemically active materials,
including solvents, additives, and electrolyte salts that
contribute to the electrochemical processes necessary for
energy storage .
``(ii) Battery cell.--The term `battery cell' means an
electrochemical cell--
``(I) comprised of 1 or more positive electrodes
and 1 or more negative electrodes,
``(II) with an energy density of not less than 100
watt-hours per liter, and
``(III) capable of storing at least 12 watt-hours
of energy.
``(iii) Battery module.--The term `battery module'
means a module--
``(I)(aa) in the case of a module using battery
cells, with 2 or more battery cells which are
configured electrically, in series or parallel, to
create voltage or current, as appropriate, to a
specified end use, or
``(bb) with no battery cells, and
``(II) with an aggregate capacity of not less than
7 kilowatt-hours (or, in the case of a module for a
hydrogen fuel cell vehicle, not less than 1 kilowatt-
hour).
``(6) Applicable critical minerals.--The term `applicable
critical mineral' means any of the following:
``(A) Aluminum.--Aluminum which is--
``(i) converted from bauxite to a minimum purity of 99
percent alumina by mass, or
``(ii) purified to a minimum purity of 99.9 percent
aluminum by mass.
``(B) Antimony.--Antimony which is--
``(i) converted to antimony trisulfide concentrate with
a minimum purity of 90 percent antimony trisulfide by mass,
or
``(ii) purified to a minimum purity of 99.65 percent
antimony by mass.
``(C) Barite.--Barite which is barium sulfate purified to a
minimum purity of 80 percent barite by mass.
``(D) Beryllium.--Beryllium which is--
``(i) converted to copper-beryllium master alloy, or
``(ii) purified to a minimum purity of 99 percent
beryllium by mass.
``(E) Cerium.--Cerium which is--
``(i) converted to cerium oxide which is purified to a
minimum purity of 99.9 percent cerium oxide by mass, or
``(ii) purified to a minimum purity of 99 percent
cerium by mass.
``(F) Cesium.--Cesium which is--
``(i) converted to cesium formate or cesium carbonate,
or
``(ii) purified to a minimum purity of 99 percent
cesium by mass.
``(G) Chromium.--Chromium which is--
``(i) converted to ferrochromium consisting of not less
than 60 percent chromium by mass, or
``(ii) purified to a minimum purity of 99 percent
chromium by mass.
``(H) Cobalt.--Cobalt which is--
``(i) converted to cobalt sulfate, or
``(ii) purified to a minimum purity of 99.6 percent
cobalt by mass.
``(I) Dysprosium.--Dysprosium which is--
``(i) converted to not less than 99 percent pure
dysprosium iron alloy by mass, or
``(ii) purified to a minimum purity of 99 percent
dysprosium by mass.
``(J) Europium.--Europium which is--
``(i) converted to europium oxide which is purified to
a minimum purity of 99.9 percent europium oxide by mass, or
``(ii) purified to a minimum purity of 99 percent by
mass.
``(K) Fluorspar.--Fluorspar which is--
``(i) converted to fluorspar which is purified to a
minimum purity of 97 percent calcium fluoride by mass, or
``(ii) purified to a minimum purity of 99 percent
fluorspar by mass.
``(L) Gadolinium.--Gadolinium which is--
``(i) converted to gadolinium oxide which is purified
to a minimum purity of 99.9 percent gadolinium oxide by
mass, or
``(ii) purified to a minimum purity of 99 percent
gadolinium by mass.
``(M) Germanium.--Germanium which is--
``(i) converted to germanium tetrachloride, or
``(ii) purified to a minimum purity of 99.99 percent
germanium by mass.
``(N) Graphite.--Graphite which is purified to a minimum
purity of 99.9 percent graphitic carbon by mass.
``(O) Indium.--Indium which is--
``(i) converted to--
``(I) indium tin oxide, or
``(II) indium oxide which is purified to a minimum
purity of 99.9 percent indium oxide by mass, or
``(ii) purified to a minimum purity of 99 percent
indium by mass.
``(P) Lithium.--Lithium which is--
``(i) converted to lithium carbonate or lithium
hydroxide, or
``(ii) purified to a minimum purity of 99.9 percent
lithium by mass.
``(Q) Manganese.--Manganese which is--
``(i) converted to manganese sulphate, or
``(ii) purified to a minimum purity of 99.7 percent
manganese by mass.
``(R) Neodymium.--Neodymium which is--
``(i) converted to neodymium-praseodymium oxide which
is purified to a minimum purity of 99 percent neodymium-
praseodymium oxide by mass,
``(ii) converted to neodymium oxide which is purified
to a minimum purity of 99.5 percent neodymium oxide by mass
``(iii) purified to a minimum purity of 99.9 percent
neodymium by mass.
``(S) Nickel.--Nickel which is--
``(i) converted to nickel sulphate, or
``(ii) purified to a minimum purity of 99 percent
nickel by mass.
``(T) Niobium.--Niobium which is--
``(i) converted to ferronibium, or
``(ii) purified to a minimum purity of 99 percent
niobium by mass.
``(U) Tellurium.--Tellurium which is--
``(i) converted to cadmium telluride, or
``(ii) purified to a minimum purity of 99 percent
tellurium by mass.
``(V) Tin.--Tin which is purified to low alpha emitting tin
which--
``(i) has a purity of greater than 99.99 percent by
mass, and
``(ii) possesses an alpha emission rate of not greater
than 0.01 counts per hour per centimeter square.
``(W) Tungsten.--Tungsten which is converted to ammonium
paratungstate or ferrotungsten.
``(X) Vanadium.--Vanadium which is converted to
ferrovanadium or vanadium pentoxide.
``(Y) Yttrium.--Yttrium which is--
``(i) converted to yttrium oxide which is purified to a
minimum purity of 99.999 percent yttrium oxide by mass, or
``(ii) purified to a minimum purity of 99.9 percent
yttrium by mass.
``(Z) Other minerals.--Any of the following minerals,
provided that such mineral is purified to a minimum purity of
99 percent by mass:
``(i) Arsenic.
``(ii) Bismuth.
``(iii) Erbium.
``(iv) Gallium.
``(v) Hafnium.
``(vi) Holmium.
``(vii) Iridium.
``(viii) Lanthanum.
``(ix) Lutetium.
``(x) Magnesium.
``(xi) Palladium.
``(xii) Platinum.
``(xiii) Praseodymium.
``(xiv) Rhodium.
``(xv) Rubidium.
``(xvi) Ruthenium.
``(xvii) Samarium.
``(xviii) Scandium.
``(xix) Tantalum.
``(xx) Terbium.
``(xxi) Thulium.
``(xxii) Titanium.
``(xxiii) Ytterbium.
``(xxiv) Zinc.
``(xxv) Zirconium.
``(d) Special Rules.--In this section--
``(1) Related persons.--Persons shall be treated as related to
each other if such persons would be treated as a single employer
under the regulations prescribed under section 52(b).
``(2) Only production in the united states taken into
account.--Sales shall be taken into account under this section only
with respect to eligible components the production of which is
within--
``(A) the United States (within the meaning of section
638(1)), or
``(B) a possession of the United States (within the meaning
of section 638(2)).
``(3) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the rules
of subsection (d) of section 52 shall apply.
``(4) Sale of integrated components.--For purposes of this
section, a person shall be treated as having sold an eligible
component to an unrelated person if such component is integrated,
incorporated, or assembled into another eligible component which is
sold to an unrelated person.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986, as
amended by the preceding provisions of this Act, is amended--
(A) in paragraph (36), by striking ``plus'' at the end,
(B) in paragraph (37), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(38) the advanced manufacturing production credit determined
under section 45X(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding provisions
of this Act, is amended by adding at the end the following new
item:
``Sec. 45X. Advanced manufacturing production credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to components produced and sold after December 31, 2022.
PART 6--SUPERFUND
SEC. 13601. REINSTATEMENT OF SUPERFUND.
(a) Hazardous Substance Superfund Financing Rate.--
(1) Extension.--Section 4611 is amended by striking subsection
(e).
(2) Adjustment for inflation.--
(A) Section 4611(c)(2)(A) is amended by striking ``9.7
cents'' and inserting ``16.4 cents''.
(B) Section 4611(c) is amended by adding at the end the
following:
``(3) Adjustment for inflation.--
``(A) In general.--In the case of a year beginning after
2023, the amount in paragraph (2)(A) shall be increased by an
amount equal to--
``(i) such amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year, determined by
substituting `calendar year 2022' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $0.01, such amount shall
be rounded to the next lowest multiple of $0.01.''.
(b) Authority for Advances.--Section 9507(d)(3)(B) is amended by
striking ``December 31, 1995'' and inserting ``December 31, 2032''.
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 2023.
PART 7--INCENTIVES FOR CLEAN ELECTRICITY AND CLEAN TRANSPORTATION
SEC. 13701. CLEAN ELECTRICITY PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
adding at the end the following new section:
``SEC. 45Y. CLEAN ELECTRICITY PRODUCTION CREDIT.
``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the clean
electricity production credit for any taxable year is an amount
equal to the product of--
``(A) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a qualified facility,
and
``(ii)(I) sold by the taxpayer to an unrelated person
during the taxable year, or
``(II) in the case of a qualified facility which is
equipped with a metering device which is owned and operated
by an unrelated person, sold, consumed, or stored by the
taxpayer during the taxable year, multiplied by
``(B) the applicable amount with respect to such qualified
facility.
``(2) Applicable amount.--
``(A) Base amount.--Subject to subsection (g)(7), in the
case of any qualified facility which is not described in clause
(i) or (ii) of subparagraph (B) and does not satisfy the
requirements described in clause (iii) of such subparagraph,
the applicable amount shall be 0.3 cents.
``(B) Alternative amount.--Subject to subsection (g)(7), in
the case of any qualified facility--
``(i) with a maximum net output of less than 1 megawatt
(as measured in alternating current),
``(ii) the construction of which begins prior to the
date that is 60 days after the Secretary publishes guidance
with respect to the requirements of paragraphs (9) and (10)
of subsection (g), or
``(iii) which--
``(I) satisfies the requirements under paragraph
(9) of subsection (g), and
``(II) with respect to the construction of such
facility, satisfies the requirements under paragraph
(10) of subsection (g),
the applicable amount shall be 1.5 cents.
``(b) Qualified Facility.--
``(1) In general.--
``(A) Definition.--Subject to subparagraphs (B), (C), and
(D), the term `qualified facility' means a facility owned by
the taxpayer--
``(i) which is used for the generation of electricity,
``(ii) which is placed in service after December 31,
2024, and
``(iii) for which the greenhouse gas emissions rate (as
determined under paragraph (2)) is not greater than zero.
``(B) 10-year production credit.--For purposes of this
section, a facility shall only be treated as a qualified
facility during the 10-year period beginning on the date the
facility was originally placed in service.
``(C) Expansion of facility; incremental production.--The
term `qualified facility' shall include either of the following
in connection with a facility described in subparagraph (A)
(without regard to clause (ii) of such subparagraph) which was
placed in service before January 1, 2025, but only to the
extent of the increased amount of electricity produced at the
facility by reason of the following:
``(i) A new unit which is placed in service after
December 31, 2024.
``(ii) Any additions of capacity which are placed in
service after December 31, 2024.
``(D) Coordination with other credits.--The term `qualified
facility' shall not include any facility for which a credit
determined under section 45, 45J, 45Q, 45U, 48, 48A, or 48E is
allowed under section 38 for the taxable year or any prior
taxable year.
``(2) Greenhouse gas emissions rate.--
``(A) In general.--For purposes of this section, the term
`greenhouse gas emissions rate' means the amount of greenhouse
gases emitted into the atmosphere by a facility in the
production of electricity, expressed as grams of
CO<INF>2</INF>e per KWh.
``(B) Fuel combustion and gasification.--In the case of a
facility which produces electricity through combustion or
gasification, the greenhouse gas emissions rate for such
facility shall be equal to the net rate of greenhouse gases
emitted into the atmosphere by such facility (taking into
account lifecycle greenhouse gas emissions, as described in
section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
7545(o)(1)(H))) in the production of electricity, expressed as
grams of CO<INF>2</INF>e per KWh.
``(C) Establishment of emissions rates for facilities.--
``(i) Publishing emissions rates.--The Secretary shall
annually publish a table that sets forth the greenhouse gas
emissions rates for types or categories of facilities,
which a taxpayer shall use for purposes of this section.
``(ii) Provisional emissions rate.--In the case of any
facility for which an emissions rate has not been
established by the Secretary, a taxpayer which owns such
facility may file a petition with the Secretary for
determination of the emissions rate with respect to such
facility.
``(D) Carbon capture and sequestration equipment.--For
purposes of this subsection, the amount of greenhouse gases
emitted into the atmosphere by a facility in the production of
electricity shall not include any qualified carbon dioxide that
is captured by the taxpayer and--
``(i) pursuant to any regulations established under
paragraph (2) of section 45Q(f), disposed of by the
taxpayer in secure geological storage, or
``(ii) utilized by the taxpayer in a manner described
in paragraph (5) of such section.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of a calendar year beginning
after 2024, the 0.3 cent amount in paragraph (2)(A) of subsection
(a) and the 1.5 cent amount in paragraph (2)(B) of such subsection
shall each be adjusted by multiplying such amount by the inflation
adjustment factor for the calendar year in which the sale,
consumption, or storage of the electricity occurs. If the 0.3 cent
amount as increased under this paragraph is not a multiple of 0.05
cent, such amount shall be rounded to the nearest multiple of 0.05
cent. If the 1.5 cent amount as increased under this paragraph is
not a multiple of 0.1 cent, such amount shall be rounded to the
nearest multiple of 0.1 cent.
``(2) Annual computation.--The Secretary shall, not later than
April 1 of each calendar year, determine and publish in the Federal
Register the inflation adjustment factor for such calendar year in
accordance with this subsection.
``(3) Inflation adjustment factor.--The term `inflation
adjustment factor' means, with respect to a calendar year, a
fraction the numerator of which is the GDP implicit price deflator
for the preceding calendar year and the denominator of which is the
GDP implicit price deflator for the calendar year 1992. The term
`GDP implicit price deflator' means the most recent revision of the
implicit price deflator for the gross domestic product as computed
and published by the Department of Commerce before March 15 of the
calendar year.
``(d) Credit Phase-out.--
``(1) In general.--The amount of the clean electricity
production credit under subsection (a) for any qualified facility
the construction of which begins during a calendar year described
in paragraph (2) shall be equal to the product of--
``(A) the amount of the credit determined under subsection
(a) without regard to this subsection, multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a facility the construction of which begins
during the first calendar year following the applicable year,
100 percent,
``(B) for a facility the construction of which begins
during the second calendar year following the applicable year,
75 percent,
``(C) for a facility the construction of which begins
during the third calendar year following the applicable year,
50 percent, and
``(D) for a facility the construction of which begins
during any calendar year subsequent to the calendar year
described in subparagraph (C), 0 percent.
``(3) Applicable year.--For purposes of this subsection, the
term `applicable year' means the later of--
``(A) the calendar year in which the Secretary determines
that the annual greenhouse gas emissions from the production of
electricity in the United States are equal to or less than 25
percent of the annual greenhouse gas emissions from the
production of electricity in the United States for calendar
year 2022, or
``(B) 2032.
``(e) Definitions.--For purposes of this section:
``(1) CO<INF>2</INF>e per KWh.--The term `CO<INF>2</INF>e per
KWh' means, with respect to any greenhouse gas, the equivalent
carbon dioxide (as determined based on global warming potential)
per kilowatt hour of electricity produced.
``(2) Greenhouse gas.--The term `greenhouse gas' has the same
meaning given such term under section 211(o)(1)(G) of the Clean Air
Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the date of the
enactment of this section.
``(3) Qualified carbon dioxide.--The term `qualified carbon
dioxide' means carbon dioxide captured from an industrial source
which--
``(A) would otherwise be released into the atmosphere as
industrial emission of greenhouse gas,
``(B) is measured at the source of capture and verified at
the point of disposal or utilization, and
``(C) is captured and disposed or utilized within the
United States (within the meaning of section 638(1)) or a
possession of the United States (within the meaning of section
638(2)).
``(f) Guidance.--Not later than January 1, 2025, the Secretary
shall issue guidance regarding implementation of this section,
including calculation of greenhouse gas emission rates for qualified
facilities and determination of clean electricity production credits
under this section.
``(g) Special Rules.--
``(1) Only production in the united states taken into
account.--Consumption, sales, or storage shall be taken into
account under this section only with respect to electricity the
production of which is within--
``(A) the United States (within the meaning of section
638(1)), or
``(B) a possession of the United States (within the meaning
of section 638(2)).
``(2) Combined heat and power system property.--
``(A) In general.--For purposes of subsection (a)--
``(i) the kilowatt hours of electricity produced by a
taxpayer at a qualified facility shall include any
production in the form of useful thermal energy by any
combined heat and power system property within such
facility, and
``(ii) the amount of greenhouse gases emitted into the
atmosphere by such facility in the production of such
useful thermal energy shall be included for purposes of
determining the greenhouse gas emissions rate for such
facility.
``(B) Combined heat and power system property.--For
purposes of this paragraph, the term `combined heat and power
system property' has the same meaning given such term by
section 48(c)(3) (without regard to subparagraphs (A)(iv), (B),
and (D) thereof).
``(C) Conversion from btu to kwh.--
``(i) In general.--For purposes of subparagraph (A)(i),
the amount of kilowatt hours of electricity produced in the
form of useful thermal energy shall be equal to the
quotient of--
``(I) the total useful thermal energy produced by
the combined heat and power system property within the
qualified facility, divided by
``(II) the heat rate for such facility.
``(ii) Heat rate.--For purposes of this subparagraph,
the term `heat rate' means the amount of energy used by the
qualified facility to generate 1 kilowatt hour of
electricity, expressed as British thermal units per net
kilowatt hour generated.
``(3) Production attributable to the taxpayer.--In the case of
a qualified facility in which more than 1 person has an ownership
interest, except to the extent provided in regulations prescribed
by the Secretary, production from the facility shall be allocated
among such persons in proportion to their respective ownership
interests in the gross sales from such facility.
``(4) Related persons.--Persons shall be treated as related to
each other if such persons would be treated as a single employer
under the regulations prescribed under section 52(b). In the case
of a corporation which is a member of an affiliated group of
corporations filing a consolidated return, such corporation shall
be treated as selling electricity to an unrelated person if such
electricity is sold to such a person by another member of such
group.
``(5) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the rules
of subsection (d) of section 52 shall apply.
``(6) Allocation of credit to patrons of agricultural
cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of an eligible
cooperative organization, any portion of the credit
determined under subsection (a) for the taxable year may,
at the election of the organization, be apportioned among
patrons of the organization on the basis of the amount of
business done by the patrons during the taxable year.
``(ii) Form and effect of election.--An election under
clause (i) for any taxable year shall be made on a timely
filed return for such year. Such election, once made, shall
be irrevocable for such taxable year. Such election shall
not take effect unless the organization designates the
apportionment as such in a written notice mailed to its
patrons during the payment period described in section
1382(d).
``(B) Treatment of organizations and patrons.--The amount
of the credit apportioned to any patrons under subparagraph
(A)--
``(i) shall not be included in the amount determined
under subsection (a) with respect to the organization for
the taxable year, and
``(ii) shall be included in the amount determined under
subsection (a) for the first taxable year of each patron
ending on or after the last day of the payment period (as
defined in section 1382(d)) for the taxable year of the
organization or, if earlier, for the taxable year of each
patron ending on or after the date on which the patron
receives notice from the cooperative of the apportionment.
``(C) Special rules for decrease in credits for taxable
year.--If the amount of the credit of a cooperative
organization determined under subsection (a) for a taxable year
is less than the amount of such credit shown on the return of
the cooperative organization for such year, an amount equal to
the excess of--
``(i) such reduction, over
``(ii) the amount not apportioned to such patrons under
subparagraph (A) for the taxable year,
shall be treated as an increase in tax imposed by this chapter
on the organization. Such increase shall not be treated as tax
imposed by this chapter for purposes of determining the amount
of any credit under this chapter.
``(D) Eligible cooperative defined.--For purposes of this
section, the term `eligible cooperative' means a cooperative
organization described in section 1381(a) which is owned more
than 50 percent by agricultural producers or by entities owned
by agricultural producers. For this purpose an entity owned by
an agricultural producer is one that is more than 50 percent
owned by agricultural producers.
``(7) Increase in credit in energy communities.--In the case of
any qualified facility which is located in an energy community (as
defined in section 45(b)(11)(B)), for purposes of determining the
amount of the credit under subsection (a) with respect to any
electricity produced by the taxpayer at such facility during the
taxable year, the applicable amount under paragraph (2) of such
subsection shall be increased by an amount equal to 10 percent of
the amount otherwise in effect under such paragraph.
``(8) Credit reduced for tax-exempt bonds.--Rules similar to
the rules of section 45(b)(3) shall apply.
``(9) Wage requirements.--Rules similar to the rules of section
45(b)(7) shall apply.
``(10) Apprenticeship requirements.--Rules similar to the rules
of section 45(b)(8) shall apply.
``(11) Domestic content bonus credit amount.--
``(A) In general.--In the case of any qualified facility
which satisfies the requirement under subparagraph (B)(i), the
amount of the credit determined under subsection (a) shall be
increased by an amount equal to 10 percent of the amount so
determined (as determined without application of paragraph
(7)).
``(B) Requirement.--
``(i) In general.--The requirement described in this
subclause is satisfied with respect to any qualified
facility if the taxpayer certifies to the Secretary (at
such time, and in such form and manner, as the Secretary
may prescribe) that any steel, iron, or manufactured
product which is a component of such facility (upon
completion of construction) was produced in the United
States (as determined under section 661 of title 49, Code
of Federal Regulations).
``(ii) Steel and iron.--In the case of steel or iron,
clause (i) shall be applied in a manner consistent with
section 661.5 of title 49, Code of Federal Regulations.
``(iii) Manufactured product.--For purposes of clause
(i), the manufactured products which are components of a
qualified facility upon completion of construction shall be
deemed to have been produced in the United States if not
less than the adjusted percentage (as determined under
subparagraph (C)) of the total costs of all such
manufactured products of such facility are attributable to
manufactured products (including components) which are
mined, produced, or manufactured in the United States.
``(C) Adjusted percentage.--
``(i) In general.--Subject to subclause (ii), for
purposes of subparagraph (B)(iii), the adjusted percentage
shall be--
``(I) in the case of a facility the construction of
which begins before January 1, 2025, 40 percent,
``(II) in the case of a facility the construction
of which begins after December 31, 2024, and before
January 1, 2026, 45 percent,
``(III) in the case of a facility the construction
of which begins after December 31, 2025, and before
January 1, 2027, 50 percent, and
``(IV) in the case of a facility the construction
of which begins after December 31, 2026, 55 percent.
``(ii) Offshore wind facility.--For purposes of
subparagraph (B)(iii), in the case of a qualified facility
which is an offshore wind facility, the adjusted percentage
shall be--
``(I) in the case of a facility the construction of
which begins before January 1, 2025, 20 percent,
``(II) in the case of a facility the construction
of which begins after December 31, 2024, and before
January 1, 2026, 27.5 percent,
``(III) in the case of a facility the construction
of which begins after December 31, 2025, and before
January 1, 2027, 35 percent,
``(IV) in the case of a facility the construction
of which begins after December 31, 2026, and before
January 1, 2028, 45 percent, and
``(V) in the case of a facility the construction of
which begins after December 31, 2027, 55 percent.
``(12) Phaseout for elective payment.--
``(A) In general.--In the case of a taxpayer making an
election under section 6417 with respect to a credit under this
section, the amount of such credit shall be replaced with--
``(i) the value of such credit (determined without
regard to this paragraph), multiplied by
``(ii) the applicable percentage.
``(B) 100 percent applicable percentage for certain
qualified facilities.--In the case of any qualified facility--
``(i) which satisfies the requirements under paragraph
(11)(B), or
``(ii) with a maximum net output of less than 1
megawatt (as measured in alternating current),
the applicable percentage shall be 100 percent.
``(C) Phased domestic content requirement.--Subject to
subparagraph (D), in the case of any qualified facility which
is not described in subparagraph (B), the applicable percentage
shall be--
``(i) if construction of such facility began before
January 1, 2024, 100 percent,
``(ii) if construction of such facility began in
calendar year 2024, 90 percent,
``(iii) if construction of such facility began in
calendar year 2025, 85 percent, and
``(iv) if construction of such facility began after
December 31, 2025, 0 percent.
``(D) Exception.--
``(i) In general.--For purposes of this paragraph, the
Secretary shall provide exceptions to the requirements
under this paragraph if--
``(I) the inclusion of steel, iron, or manufactured
products which are produced in the United States
increases the overall costs of construction of
qualified facilities by more than 25 percent, or
``(II) relevant steel, iron, or manufactured
products are not produced in the United States in
sufficient and reasonably available quantities or of a
satisfactory quality.
``(ii) Applicable percentage.--In any case in which the
Secretary provides an exception pursuant to clause (i), the
applicable percentage shall be 100 percent.''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by the preceding provisions of
this Act, is amended--
(A) in paragraph (37), by striking ``plus'' at the end,
(B) in paragraph (38), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(39) the clean electricity production credit determined under
section 45Y(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding provisions
of this Act, is amended by adding at the end the following new
item:
``Sec. 45Y. Clean electricity production credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after December 31, 2024.
SEC. 13702. CLEAN ELECTRICITY INVESTMENT CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1,
as amended by section 107(a) of the CHIPS Act of 2022, is amended by
inserting after section 48D the following new section:
``SEC. 48E. CLEAN ELECTRICITY INVESTMENT CREDIT.
``(a) Investment Credit for Qualified Property.--
``(1) In general.--For purposes of section 46, the clean
electricity investment credit for any taxable year is an amount
equal to the applicable percentage of the qualified investment for
such taxable year with respect to--
``(A) any qualified facility, and
``(B) any energy storage technology.
``(2) Applicable percentage.--
``(A) Qualified facilities.--Subject to paragraph (3)--
``(i) Base rate.--In the case of any qualified facility
which is not described in subclause (I) or (II) of clause
(ii) and does not satisfy the requirements described in
subclause (III) of such clause, the applicable percentage
shall be 6 percent.
``(ii) Alternative rate.--In the case of any qualified
facility--
``(I) with a maximum net output of less than 1
megawatt (as measured in alternating current),
``(II) the construction of which begins prior to
the date that is 60 days after the Secretary publishes
guidance with respect to the requirements of paragraphs
(3) and (4) of subsection (d), or
``(III) which--
``(aa) satisfies the requirements of subsection
(d)(3), and
``(bb) with respect to the construction of such
facility, satisfies the requirements of subsection
(d)(4),
the applicable percentage shall be 30 percent.
``(B) Energy storage technology.--Subject to paragraph
(3)--
``(i) Base rate.--In the case of any energy storage
technology which is not described in subclause (I) or (II)
of clause (ii) and does not satisfy the requirements
described in subclause (III) of such clause, the applicable
percentage shall be 6 percent.
``(ii) Alternative rate.--In the case of any energy
storage technology--
``(I) with a capacity of less than 1 megawatt,
``(II) the construction of which begins prior to
the date that is 60 days after the Secretary publishes
guidance with respect to the requirements of paragraphs
(3) and (4) of subsection (d), or
``(III) which--
``(aa) satisfies the requirements of subsection
(d)(3), and
``(bb) with respect to the construction of such
property, satisfies the requirements of subsection
(d)(4),
the applicable percentage shall be 30 percent.
``(3) Increase in credit rate in certain cases.--
``(A) Energy communities.--
``(i) In general.--In the case of any qualified
investment with respect to a qualified facility or with
respect to energy storage technology which is placed in
service within an energy community (as defined in section
45(b)(11)(B)), for purposes of applying paragraph (2) with
respect to such property or investment, the applicable
percentage shall be increased by the applicable credit rate
increase.
``(ii) Applicable credit rate increase.--For purposes
of clause (i), the applicable credit rate increase shall be
an amount equal to--
``(I) in the case of any qualified investment with
respect to a qualified facility described in paragraph
(2)(A)(i) or with respect to energy storage technology
described in paragraph (2)(B)(i), 2 percentage points,
and
``(II) in the case of any qualified investment with
respect to a qualified facility described in paragraph
(2)(A)(ii) or with respect to energy storage technology
described in paragraph (2)(B)(ii), 10 percentage
points.
``(B) Domestic content.--Rules similar to the rules of
section 48(a)(12) shall apply.
``(b) Qualified Investment With Respect to a Qualified Facility.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to any qualified facility for any
taxable year is the sum of--
``(A) the basis of any qualified property placed in service
by the taxpayer during such taxable year which is part of a
qualified facility, plus
``(B) the amount of any expenditures which are--
``(i) paid or incurred by the taxpayer for qualified
interconnection property--
``(I) in connection with a qualified facility which
has a maximum net output of not greater than 5
megawatts (as measured in alternating current), and
``(II) placed in service during the taxable year of
the taxpayer, and
``(ii) properly chargeable to capital account of the
taxpayer.
``(2) Qualified property.--For purposes of this section, the
term `qualified property' means property--
``(A) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not including a
building or its structural components), but only if such
property is used as an integral part of the qualified
facility,
``(B) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable, and
``(C)(i) the construction, reconstruction, or erection of
which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the original
use of such property commences with the taxpayer.
``(3) Qualified facility.--
``(A) In general.--For purposes of this section, the term
`qualified facility' means a facility--
``(i) which is used for the generation of electricity,
``(ii) which is placed in service after December 31,
2024, and
``(iii) for which the anticipated greenhouse gas
emissions rate (as determined under subparagraph (B)(ii))
is not greater than zero.
``(B) Additional rules.--
``(i) Expansion of facility; incremental production.--
Rules similar to the rules of section 45Y(b)(1)(C) shall
apply for purposes of this paragraph.
``(ii) Greenhouse gas emissions rate.--Rules similar to
the rules of section 45Y(b)(2) shall apply for purposes of
this paragraph.
``(C) Exclusion.--The term `qualified facility' shall not
include any facility for which--
``(i) a renewable electricity production credit
determined under section 45,
``(ii) an advanced nuclear power facility production
credit determined under section 45J,
``(iii) a carbon oxide sequestration credit determined
under section 45Q,
``(iv) a zero-emission nuclear power production credit
determined under section 45U,
``(v) a clean electricity production credit determined
under section 45Y,
``(vi) an energy credit determined under section 48, or
``(vii) a qualifying advanced coal project credit under
section 48A,
is allowed under section 38 for the taxable year or any prior
taxable year.
``(4) Qualified interconnection property.--For purposes of this
paragraph, the term `qualified interconnection property' has the
meaning given such term in section 48(a)(8)(B).
``(5) Coordination with rehabilitation credit.--The qualified
investment with respect to any qualified facility for any taxable
year shall not include that portion of the basis of any property
which is attributable to qualified rehabilitation expenditures (as
defined in section 47(c)(2)).
``(6) Definitions.--For purposes of this subsection, the terms
`CO2e per KWh' and `greenhouse gas emissions rate' have the same
meaning given such terms under section 45Y.
``(c) Qualified Investment With Respect to Energy Storage
Technology.--
``(1) Qualified investment.--For purposes of subsection (a),
the qualified investment with respect to energy storage technology
for any taxable year is the basis of any energy storage technology
placed in service by the taxpayer during such taxable year.
``(2) Energy storage technology.--For purposes of this section,
the term `energy storage technology' has the meaning given such
term in section 48(c)(6) (except that subparagraph (D) of such
section shall not apply).
``(d) Special Rules.--
``(1) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of section
46 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990) shall apply for purposes of
subsection (a).
``(2) Special rule for property financed by subsidized energy
financing or private activity bonds.--Rules similar to the rules of
section 45(b)(3) shall apply.
``(3) Prevailing wage requirements.--Rules similar to the rules
of section 48(a)(10) shall apply.
``(4) Apprenticeship requirements.--Rules similar to the rules
of section 45(b)(8) shall apply.
``(5) Domestic content requirement for elective payment.--In
the case of a taxpayer making an election under section 6417 with
respect to a credit under this section, rules similar to the rules
of section 45Y(g)(12) shall apply.
``(e) Credit Phase-Out.--
``(1) In general.--The amount of the clean electricity
investment credit under subsection (a) for any qualified investment
with respect to any qualified facility or energy storage technology
the construction of which begins during a calendar year described
in paragraph (2) shall be equal to the product of--
``(A) the amount of the credit determined under subsection
(a) without regard to this subsection, multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for any qualified investment with respect to any
qualified facility or energy storage technology the
construction of which begins during the first calendar year
following the applicable year, 100 percent,
``(B) for any qualified investment with respect to any
qualified facility or energy storage technology the
construction of which begins during the second calendar year
following the applicable year, 75 percent,
``(C) for any qualified investment with respect to any
qualified facility or energy storage technology the
construction of which begins during the third calendar year
following the applicable year, 50 percent, and
``(D) for any qualified investment with respect to any
qualified facility or energy storage technology the
construction of which begins during any calendar year
subsequent to the calendar year described in subparagraph (C),
0 percent.
``(3) Applicable year.--For purposes of this subsection, the
term `applicable year' has the same meaning given such term in
section 45Y(d)(3).
``(f) Greenhouse Gas.--In this section, the term `greenhouse gas'
has the same meaning given such term under section 45Y(e)(2).
``(g) Recapture of Credit.--For purposes of section 50, if the
Secretary determines that the greenhouse gas emissions rate for a
qualified facility is greater than 10 grams of CO<INF>2</INF>e per KWh,
any property for which a credit was allowed under this section with
respect to such facility shall cease to be investment credit property
in the taxable year in which the determination is made.
``(h) Special Rules for Certain Facilities Placed in Service in
Connection With Low-income Communities.--
``(1) In general.--In the case of any applicable facility with
respect to which the Secretary makes an allocation of environmental
justice capacity limitation under paragraph (4)--
``(A) the applicable percentage otherwise determined under
subsection (a)(2) with respect to any eligible property which
is part of such facility shall be increased by--
``(i) in the case of a facility described in subclause
(I) of paragraph (2)(A)(iii) and not described in subclause
(II) of such paragraph, 10 percentage points, and
``(ii) in the case of a facility described in subclause
(II) of paragraph (2)(A)(iii), 20 percentage points, and
``(B) the increase in the credit determined under
subsection (a) by reason of this subsection for any taxable
year with respect to all property which is part of such
facility shall not exceed the amount which bears the same ratio
to the amount of such increase (determined without regard to
this subparagraph) as--
``(i) the environmental justice capacity limitation
allocated to such facility, bears to
``(ii) the total megawatt nameplate capacity of such
facility, as measured in direct current.
``(2) Applicable facility.--For purposes of this subsection--
``(A) In general.--The term `applicable facility' means any
qualified facility--
``(i) which is not described in section 45Y(b)(2)(B),
``(ii) which has a maximum net output of less than 5
megawatts (as measured in alternating current), and
``(iii) which--
``(I) is located in a low-income community (as
defined in section 45D(e)) or on Indian land (as
defined in section 2601(2) of the Energy Policy Act of
1992 (25 U.S.C. 3501(2))), or
``(II) is part of a qualified low-income
residential building project or a qualified low-income
economic benefit project.
``(B) Qualified low-income residential building project.--A
facility shall be treated as part of a qualified low-income
residential building project if--
``(i) such facility is installed on a residential
rental building which participates in a covered housing
program (as defined in section 41411(a) of the Violence
Against Women Act of 1994 (34 U.S.C. 12491(a)(3)), a
housing assistance program administered by the Department
of Agriculture under title V of the Housing Act of 1949, a
housing program administered by a tribally designated
housing entity (as defined in section 4(22) of the Native
American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4103(22))) or such other affordable housing
programs as the Secretary may provide, and
``(ii) the financial benefits of the electricity
produced by such facility are allocated equitably among the
occupants of the dwelling units of such building.
``(C) Qualified low-income economic benefit project.--A
facility shall be treated as part of a qualified low-income
economic benefit project if at least 50 percent of the
financial benefits of the electricity produced by such facility
are provided to households with income of--
``(i) less than 200 percent of the poverty line (as
defined in section 36B(d)(3)(A)) applicable to a family of
the size involved, or
``(ii) less than 80 percent of area median gross income
(as determined under section 142(d)(2)(B)).
``(D) Financial benefit.--For purposes of subparagraphs (B)
and (C), electricity acquired at a below-market rate shall not
fail to be taken into account as a financial benefit.
``(3) Eligible property.--For purposes of this subsection, the
term `eligible property' means a qualified investment with respect
to any applicable facility.
``(4) Allocations.--
``(A) In general.--Not later than January 1, 2025, the
Secretary shall establish a program to allocate amounts of
environmental justice capacity limitation to applicable
facilities. In establishing such program and to carry out the
purposes of this subsection, the Secretary shall provide
procedures to allow for an efficient allocation process,
including, when determined appropriate, consideration of
multiple projects in a single application if such projects will
be placed in service by a single taxpayer.
``(B) Limitation.--The amount of environmental justice
capacity limitation allocated by the Secretary under
subparagraph (A) during any calendar year shall not exceed the
annual capacity limitation with respect to such year.
``(C) Annual capacity limitation.--For purposes of this
paragraph, the term `annual capacity limitation' means 1.8
gigawatts of direct current capacity for each calendar year
during the period beginning on January 1, 2025, and ending on
December 31 of the applicable year (as defined in section
45Y(d)(3)), and zero thereafter.
``(D) Carryover of unused limitation.--
``(i) In general.--If the annual capacity limitation
for any calendar year exceeds the aggregate amount
allocated for such year under this paragraph, such
limitation for the succeeding calendar year shall be
increased by the amount of such excess. No amount may be
carried under the preceding sentence to any calendar year
after the third calendar year following the applicable year
(as defined in section 45Y(d)(3)).
``(ii) Carryover from section 48 for calendar year
2025.--If the annual capacity limitation for calendar year
2024 under section 48(e)(4)(D) exceeds the aggregate amount
allocated for such year under such section, such excess
amount may be carried over and applied to the annual
capacity limitation under this subsection for calendar year
2025. The annual capacity limitation for calendar year 2025
shall be increased by the amount of such excess.
``(E) Placed in service deadline.--
``(i) In general.--Paragraph (1) shall not apply with
respect to any property which is placed in service after
the date that is 4 years after the date of the allocation
with respect to the facility of which such property is a
part.
``(ii) Application of carryover.--Any amount of
environmental justice capacity limitation which expires
under clause (i) during any calendar year shall be taken
into account as an excess described in subparagraph (D)(i)
(or as an increase in such excess) for such calendar year,
subject to the limitation imposed by the last sentence of
such subparagraph.
``(5) Recapture.--The Secretary shall, by regulations or other
guidance, provide for recapturing the benefit of any increase in
the credit allowed under subsection (a) by reason of this
subsection with respect to any property which ceases to be property
eligible for such increase (but which does not cease to be
investment credit property within the meaning of section 50(a)).
The period and percentage of such recapture shall be determined
under rules similar to the rules of section 50(a). To the extent
provided by the Secretary, such recapture may not apply with
respect to any property if, within 12 months after the date the
taxpayer becomes aware (or reasonably should have become aware) of
such property ceasing to be property eligible for such increase,
the eligibility of such property for such increase is restored. The
preceding sentence shall not apply more than once with respect to
any facility.
``(i) Guidance.--Not later than January 1, 2025, the Secretary
shall issue guidance regarding implementation of this section.''.
(b) Conforming Amendments.--
(1) Section 46, as amended by section 107(d) of the CHIPS Act
of 2022, is amended--
(A) in paragraph (5), by striking ``and'' at the end,
(B) in paragraph (6), by striking the period at the end and
inserting ``, and'', and
(C) by adding at the end the following:
``(7) the clean electricity investment credit.''.
(2) Section 49(a)(1)(C), as amended by section 107(d) of the
CHIPS Act of 2022, is amended--
(A) by striking ``and'' at the end of clause (v),
(B) by striking the period at the end of clause (vi) and
inserting a comma, and
(C) by adding at the end the following new clauses:
``(vii) the basis of any qualified property which is
part of a qualified facility under section 48E, and
``(viii) the basis of any energy storage technology
under section 48E.''.
(3) Section 50(a)(2)(E), as amended by section 107(d) of the
CHIPS Act of 2022, is amended by striking ``or 48D(b)(5)'' and
inserting ``48D(b)(5), or 48E(e)''.
(4) Section 50(c)(3) is amended by inserting ``or clean
electricity investment credit'' after ``In the case of any energy
credit''.
(5) The table of sections for subpart E of part IV of
subchapter A of chapter 1, as amended by section 107(d) of the
CHIPS Act of 2022, is amended by inserting after the item relating
to section 48D the following new item:
``48E. Clean electricity investment credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2024.
SEC. 13703. COST RECOVERY FOR QUALIFIED FACILITIES, QUALIFIED PROPERTY,
AND ENERGY STORAGE TECHNOLOGY.
(a) In General.--Section 168(e)(3)(B) is amended--
(1) in clause (vi)(III), by striking ``and'' at the end,
(2) in clause (vii), by striking the period at the end and
inserting ``, and'', and
(3) by inserting after clause (vii) the following:
``(viii) any qualified facility (as defined in section
45Y(b)(1)(A)), any qualified property (as defined in
subsection (b)(2) of section 48E) which is a qualified
investment (as defined in subsection (b)(1) of such
section), or any energy storage technology (as defined in
subsection (c)(2) of such section).''.
(b) Effective Date.--The amendments made by this section shall
apply to facilities and property placed in service after December 31,
2024.
SEC. 13704. CLEAN FUEL PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1,
as amended by the preceding provisions of this Act, is amended by
adding at the end the following new section:
``SEC. 45Z. CLEAN FUEL PRODUCTION CREDIT.
``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the clean fuel
production credit for any taxable year is an amount equal to the
product of--
``(A) the applicable amount per gallon (or gallon
equivalent) with respect to any transportation fuel which is--
``(i) produced by the taxpayer at a qualified facility,
and
``(ii) sold by the taxpayer in a manner described in
paragraph (4) during the taxable year, and
``(B) the emissions factor for such fuel (as determined
under subsection (b)).
``(2) Applicable amount.--
``(A) Base amount.--In the case of any transportation fuel
produced at a qualified facility which does not satisfy the
requirements described in subparagraph (B), the applicable
amount shall be 20 cents.
``(B) Alternative amount.--In the case of any
transportation fuel produced at a qualified facility which
satisfies the requirements under paragraphs (6) and (7) of
subsection (f), the applicable amount shall be $1.00.
``(3) Special rate for sustainable aviation fuel.--
``(A) In general.--In the case of a transportation fuel
which is sustainable aviation fuel, paragraph (2) shall be
applied--
``(i) in the case of fuel produced at a qualified
facility described in paragraph (2)(A), by substituting `35
cents' for `20 cents', and
``(ii) in the case of fuel produced at a qualified
facility described in paragraph (2)(B), by substituting
`$1.75' for `$1.00'.
``(B) Sustainable aviation fuel.--For purposes of this
subparagraph (A), the term `sustainable aviation fuel' means
liquid fuel, the portion of which is not kerosene, which is
sold for use in an aircraft and which--
``(i) meets the requirements of--
``(I) ASTM International Standard D7566, or
``(II) the Fischer Tropsch provisions of ASTM
International Standard D1655, Annex A1, and
``(ii) is not derived from palm fatty acid distillates
or petroleum.
``(4) Sale.--For purposes of paragraph (1), the transportation
fuel is sold in a manner described in this paragraph if such fuel
is sold by the taxpayer to an unrelated person--
``(A) for use by such person in the production of a fuel
mixture,
``(B) for use by such person in a trade or business, or
``(C) who sells such fuel at retail to another person and
places such fuel in the fuel tank of such other person.
``(5) Rounding.--If any amount determined under paragraph (1)
is not a multiple of 1 cent, such amount shall be rounded to the
nearest cent.
``(b) Emissions Factors.--
``(1) Emissions factor.--
``(A) Calculation.--
``(i) In general.--The emissions factor of a
transportation fuel shall be an amount equal to the
quotient of--
``(I) an amount equal to--
``(aa) 50 kilograms of CO<INF>2</INF>e per
mmBTU, minus
``(bb) the emissions rate for such fuel,
divided by
``(II) 50 kilograms of CO<INF>2</INF>e per mmBTU.
``(B) Establishment of emissions rate.--
``(i) In general.--Subject to clauses (ii) and (iii),
the Secretary shall annually publish a table which sets
forth the emissions rate for similar types and categories
of transportation fuels based on the amount of lifecycle
greenhouse gas emissions (as described in section
211(o)(1)(H) of the Clean Air Act (42 U.S.C.
7545(o)(1)(H)), as in effect on the date of the enactment
of this section) for such fuels, expressed as kilograms of
CO<INF>2</INF>e per mmBTU, which a taxpayer shall use for
purposes of this section.
``(ii) Non-aviation fuel.--In the case of any
transportation fuel which is not a sustainable aviation
fuel, the lifecycle greenhouse gas emissions of such fuel
shall be based on the most recent determinations under the
Greenhouse gases, Regulated Emissions, and Energy use in
Transportation model developed by Argonne National
Laboratory, or a successor model (as determined by the
Secretary).
``(iii) Aviation fuel.--In the case of any
transportation fuel which is a sustainable aviation fuel,
the lifecycle greenhouse gas emissions of such fuel shall
be determined in accordance with--
``(I) the most recent Carbon Offsetting and
Reduction Scheme for International Aviation which has
been adopted by the International Civil Aviation
Organization with the agreement of the United States,
or
``(II) any similar methodology which satisfies the
criteria under section 211(o)(1)(H) of the Clean Air
Act (42 U.S.C. 7545(o)(1)(H)), as in effect on the date
of enactment of this section.
``(C) Rounding of emissions rate.--
``(i) In general.--Subject to clause (ii), the
Secretary may round the emissions rates under subparagraph
(B) to the nearest multiple of 5 kilograms of
CO<INF>2</INF>e per mmBTU.
``(ii) Exception.--In the case of an emissions rate
that is between 2.5 kilograms of CO<INF>2</INF>e per mmBTU
and -2.5 kilograms of CO<INF>2</INF>e per mmBTU, the
Secretary may round such rate to zero.
``(D) Provisional emissions rate.--In the case of any
transportation fuel for which an emissions rate has not been
established under subparagraph (B), a taxpayer producing such
fuel may file a petition with the Secretary for determination
of the emissions rate with respect to such fuel.
``(2) Rounding.--If any amount determined under paragraph
(1)(A) is not a multiple of 0.1, such amount shall be rounded to
the nearest multiple of 0.1.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of calendar years beginning
after 2024, the 20 cent amount in subsection (a)(2)(A), the $1.00
amount in subsection (a)(2)(B), the 35 cent amount in subsection
(a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii)
shall each be adjusted by multiplying such amount by the inflation
adjustment factor for the calendar year in which the sale of the
transportation fuel occurs. If any amount as increased under the
preceding sentence is not a multiple of 1 cent, such amount shall
be rounded to the nearest multiple of 1 cent.
``(2) Inflation adjustment factor.--For purposes of paragraph
(1), the inflation adjustment factor shall be the inflation
adjustment factor determined and published by the Secretary
pursuant to section 45Y(c), determined by substituting `calendar
year 2022' for `calendar year 1992' in paragraph (3) thereof.
``(d) Definitions.--In this section:
``(1) mmBTU.--The term `mmBTU' means 1,000,000 British thermal
units.
``(2) CO<INF>2</INF>e.--The term `CO<INF>2</INF>e' means, with
respect to any greenhouse gas, the equivalent carbon dioxide (as
determined based on relative global warming potential).
``(3) Greenhouse gas.--The term `greenhouse gas' has the same
meaning given that term under section 211(o)(1)(G) of the Clean Air
Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the date of the
enactment of this section.
``(4) Qualified facility.--The term `qualified facility'--
``(A) means a facility used for the production of
transportation fuels, and
``(B) does not include any facility for which one of the
following credits is allowed under section 38 for the taxable
year:
``(i) The credit for production of clean hydrogen under
section 45V.
``(ii) The credit determined under section 46 to the
extent that such credit is attributable to the energy
credit determined under section 48 with respect to any
specified clean hydrogen production facility for which an
election is made under subsection (a)(15) of such section.
``(iii) The credit for carbon oxide sequestration under
section 45Q.
``(5) Transportation fuel.--
``(A) In general.--The term `transportation fuel' means a
fuel which--
``(i) is suitable for use as a fuel in a highway
vehicle or aircraft,
``(ii) has an emissions rate which is not greater than
50 kilograms of CO<INF>2</INF>e per mmBTU, and
``(iii) is not derived from coprocessing an applicable
material (or materials derived from an applicable material)
with a feedstock which is not biomass.
``(B) Definitions.--In this paragraph--
``(i) Applicable material.--The term `applicable
material' means--
``(I) monoglycerides, diglycerides, and
triglycerides,
``(II) free fatty acids, and
``(III) fatty acid esters.
``(ii) Biomass.--The term `biomass' has the same
meaning given such term in section 45K(c)(3).
``(e) Guidance.--Not later than January 1, 2025, the Secretary
shall issue guidance regarding implementation of this section,
including calculation of emissions factors for transportation fuel, the
table described in subsection (b)(1)(B)(i), and the determination of
clean fuel production credits under this section.
``(f) Special Rules.--
``(1) Only registered production in the united states taken
into account.--
``(A) In general.--No clean fuel production credit shall be
determined under subsection (a) with respect to any
transportation fuel unless--
``(i) the taxpayer--
``(I) is registered as a producer of clean fuel
under section 4101 at the time of production, and
``(II) in the case of any transportation fuel which
is a sustainable aviation fuel, provides--
``(aa) certification (in such form and manner
as the Secretary shall prescribe) from an unrelated
party demonstrating compliance with--
``(AA) any general requirements, supply
chain traceability requirements, and
information transmission requirements
established under the Carbon Offsetting and
Reduction Scheme for International Aviation
described in subclause (I) of subsection
(b)(1)(B)(iii), or
``(BB) in the case of any methodology
described in subclause (II) of such subsection,
requirements similar to the requirements
described in subitem (AA), and
``(bb) such other information with respect to
such fuel as the Secretary may require for purposes
of carrying out this section, and
``(ii) such fuel is produced in the United States.
``(B) United states.--For purposes of this paragraph, the
term `United States' includes any possession of the United
States.
``(2) Production attributable to the taxpayer.--In the case of
a facility in which more than 1 person has an ownership interest,
except to the extent provided in regulations prescribed by the
Secretary, production from the facility shall be allocated among
such persons in proportion to their respective ownership interests
in the gross sales from such facility.
``(3) Related persons.--Persons shall be treated as related to
each other if such persons would be treated as a single employer
under the regulations prescribed under section 52(b). In the case
of a corporation which is a member of an affiliated group of
corporations filing a consolidated return, such corporation shall
be treated as selling fuel to an unrelated person if such fuel is
sold to such a person by another member of such group.
``(4) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the rules
of subsection (d) of section 52 shall apply.
``(5) Allocation of credit to patrons of agricultural
cooperative.--Rules similar to the rules of section 45Y(g)(6) shall
apply.
``(6) Prevailing wage requirements.--
``(A) In general.--Subject to subparagraph (B), rules
similar to the rules of section 45(b)(7) shall apply.
``(B) Special rule for facilities placed in service before
january 1, 2025.--For purposes of subparagraph (A), in the case
of any qualified facility placed in service before January 1,
2025--
``(i) clause (i) of section 45(b)(7)(A) shall not
apply, and
``(ii) clause (ii) of such section shall be applied by
substituting `with respect to any taxable year beginning
after December 31, 2024, for which the credit is allowed
under this section' for `with respect to any taxable year,
for any portion of such taxable year which is within the
period described in subsection (a)(2)(A)(ii)'.
``(7) Apprenticeship requirements.--Rules similar to the rules
of section 45(b)(8) shall apply.
``(g) Termination.--This section shall not apply to transportation
fuel sold after December 31, 2027.''.
(b) Conforming Amendments.--
(1) Section 25C(d)(3), as amended by the preceding provisions
of this Act, is amended--
(A) in subparagraph (A), by striking ``and'' at the end,
(B) in subparagraph (B), by striking the period at the end
and inserting ``, and'', and
(C) by adding at the end the following new subparagraph:
``(C) transportation fuel (as defined in section
45Z(d)(5)).''.
(2) Section 30C(c)(1)(B), as amended by the preceding
provisions of this Act, is amended by adding at the end the
following new clause:
``(iv) Any transportation fuel (as defined in section
45Z(d)(5)).''.
(3) Section 38(b), as amended by the preceding provisions of
this Act, is amended--
(A) in paragraph (38), by striking ``plus'' at the end,
(B) in paragraph (39), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(40) the clean fuel production credit determined under
section 45Z(a).''.
(4) The table of sections for subpart D of part IV of
subchapter A of chapter 1, as amended by the preceding provisions
of this Act, is amended by adding at the end the following new
item:
``Sec. 45Z. Clean fuel production credit.''.
(5) Section 4101(a)(1), as amended by the preceding provisions
of this Act, is amended by inserting ``every person producing a
fuel eligible for the clean fuel production credit (pursuant to
section 45Z),'' after ``section 6426(k)(3)),''.
(c) Effective Date.--The amendments made by this section shall
apply to transportation fuel produced after December 31, 2024.
PART 8--CREDIT MONETIZATION AND APPROPRIATIONS
SEC. 13801. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELECTRICITY
PRODUCED FROM CERTAIN RENEWABLE RESOURCES, ETC.
(a) In General.--Subchapter B of chapter 65 is amended by inserting
after section 6416 the following new section:
``SEC. 6417. ELECTIVE PAYMENT OF APPLICABLE CREDITS.
``(a) In General.--In the case of an applicable entity making an
election (at such time and in such manner as the Secretary may provide)
under this section with respect to any applicable credit determined
with respect to such entity, such entity shall be treated as making a
payment against the tax imposed by subtitle A (for the taxable year
with respect to which such credit was determined) equal to the amount
of such credit.
``(b) Applicable Credit.--The term `applicable credit' means each
of the following:
``(1) So much of the credit for alternative fuel vehicle
refueling property allowed under section 30C which, pursuant to
subsection (d)(1) of such section, is treated as a credit listed in
section 38(b).
``(2) So much of the renewable electricity production credit
determined under section 45(a) as is attributable to qualified
facilities which are originally placed in service after December
31, 2022.
``(3) So much of the credit for carbon oxide sequestration
determined under section 45Q(a) as is attributable to carbon
capture equipment which is originally placed in service after
December 31, 2022.
``(4) The zero-emission nuclear power production credit
determined under section 45U(a).
``(5) So much of the credit for production of clean hydrogen
determined under section 45V(a) as is attributable to qualified
clean hydrogen production facilities which are originally placed in
service after December 31, 2012.
``(6) In the case of a tax-exempt entity described in clause
(i), (ii), or (iv) of section 168(h)(2)(A), the credit for
qualified commercial vehicles determined under section 45W by
reason of subsection (d)(3) thereof.
``(7) The credit for advanced manufacturing production under
section 45X(a).
``(8) The clean electricity production credit determined under
section 45Y(a).
``(9) The clean fuel production credit determined under section
45Z(a).
``(10) The energy credit determined under section 48.
``(11) The qualifying advanced energy project credit determined
under section 48C.
``(12) The clean electricity investment credit determined under
section 48E.
``(c) Application to Partnerships and S Corporations.--
``(1) In general.--In the case of any applicable credit
determined with respect to any facility or property held directly
by a partnership or S corporation, any election under subsection
(a) shall be made by such partnership or S corporation. If such
partnership or S corporation makes an election under such
subsection (in such manner as the Secretary may provide) with
respect to such credit--
``(A) the Secretary shall make a payment to such
partnership or S corporation equal to the amount of such
credit,
``(B) subsection (e) shall be applied with respect to such
credit before determining any partner's distributive share, or
shareholder's pro rata share, of such credit,
``(C) any amount with respect to which the election in
subsection (a) is made shall be treated as tax exempt income
for purposes of sections 705 and 1366, and
``(D) a partner's distributive share of such tax exempt
income shall be based on such partner's distributive share of
the otherwise applicable credit for each taxable year.
``(2) Coordination with application at partner or shareholder
level.--In the case of any facility or property held directly by a
partnership or S corporation, no election by any partner or
shareholder shall be allowed under subsection (a) with respect to
any applicable credit determined with respect to such facility or
property.
``(3) Treatment of payments to partnerships and s
corporations.--For purposes of section 1324 of title 31, United
States Code, the payments under paragraph (1)(A) shall be treated
in the same manner as a refund due from a credit provision referred
to in subsection (b)(2) of such section.
``(d) Special Rules.--For purposes of this section--
``(1) Applicable entity.--
``(A) In general.--The term `applicable entity' means--
``(i) any organization exempt from the tax imposed by
subtitle A,
``(ii) any State or political subdivision thereof,
``(iii) the Tennessee Valley Authority,
``(iv) an Indian tribal government (as defined in
section 30D(g)(9)),
``(v) any Alaska Native Corporation (as defined in
section 3 of the Alaska Native Claims Settlement Act (43
U.S.C. 1602(m)), or
``(vi) any corporation operating on a cooperative basis
which is engaged in furnishing electric energy to persons
in rural areas.
``(B) Election with respect to credit for production of
clean hydrogen.--If a taxpayer other than an entity described
in subparagraph (A) makes an election under this subparagraph
with respect to any taxable year in which such taxpayer has
placed in service a qualified clean hydrogen production
facility (as defined in section 45V(c)(3)), such taxpayer shall
be treated as an applicable entity for purposes of this section
for such taxable year, but only with respect to the credit
described in subsection (b)(5).
``(C) Election with respect to credit for carbon oxide
sequestration.--If a taxpayer other than an entity described in
subparagraph (A) makes an election under this subparagraph with
respect to any taxable year in which such taxpayer has, after
December 31, 2022, placed in service carbon capture equipment
at a qualified facility (as defined in section 45Q(d)), such
taxpayer shall be treated as an applicable entity for purposes
of this section for such taxable year, but only with respect to
the credit described in subsection (b)(3).
``(D) Election with respect to advanced manufacturing
production credit.--
``(i) In general.--If a taxpayer other than an entity
described in subparagraph (A) makes an election under this
subparagraph with respect to any taxable year in which such
taxpayer has, after December 31, 2022, produced eligible
components (as defined in section 45X(c)(1)), such taxpayer
shall be treated as an applicable entity for purposes of
this section for such taxable year, but only with respect
to the credit described in subsection (b)(7).
``(ii) Limitation.--
``(I) In general.--Except as provided in subclause
(II), if a taxpayer makes an election under this
subparagraph with respect to any taxable year, such
taxpayer shall be treated as having made such election
for each of the 4 succeeding taxable years ending
before January 1, 2033.
``(II) Exception.--A taxpayer may elect to revoke
the application of the election made under this
subparagraph to any taxable year described in subclause
(I). Any such election, if made, shall apply to the
applicable year specified in such election and each
subsequent taxable year within the period described in
subclause (I). Any election under this subclause may
not be subsequently revoked.
``(iii) Prohibition on transfer.--For any taxable year
described in clause (ii)(I), no election may be made by the
taxpayer under section 6418(a) for such taxable year with
respect to eligible components for purposes of the credit
described in subsection (b)(7).
``(E) Other rules.--
``(i) In general.--An election made under subparagraph
(B), (C), or (D) shall be made at such time and in such
manner as the Secretary may provide.
``(ii) Limitation.--No election may be made under
subparagraph (B), (C), or (D) with respect to any taxable
year beginning after December 31, 2032.
``(2) Application.--In the case of any applicable entity which
makes the election described in subsection (a), any applicable
credit shall be determined--
``(A) without regard to paragraphs (3) and (4)(A)(i) of
section 50(b), and
``(B) by treating any property with respect to which such
credit is determined as used in a trade or business of the
applicable entity.
``(3) Elections.--
``(A) In general.--
``(i) Due date.--Any election under subsection (a)
shall be made not later than--
``(I) in the case of any government, or political
subdivision, described in paragraph (1) and for which
no return is required under section 6011 or 6033(a),
such date as is determined appropriate by the
Secretary, or
``(II) in any other case, the due date (including
extensions of time) for the return of tax for the
taxable year for which the election is made, but in no
event earlier than 180 days after the date of the
enactment of this section.
``(ii) Additional rules.--Any election under subsection
(a), once made, shall be irrevocable and shall apply
(except as otherwise provided in this paragraph) with
respect to any credit for the taxable year for which the
election is made.
``(B) Renewable electricity production credit.--In the case
of the credit described in subsection (b)(2), any election
under subsection (a) shall--
``(i) apply separately with respect to each qualified
facility,
``(ii) be made for the taxable year in which such
qualified facility is originally placed in service, and
``(iii) shall apply to such taxable year and to any
subsequent taxable year which is within the period
described in subsection (a)(2)(A)(ii) of section 45 with
respect to such qualified facility.
``(C) Credit for carbon oxide sequestration.--
``(i) In general.--In the case of the credit described
in subsection (b)(3), any election under subsection (a)
shall--
``(I) apply separately with respect to the carbon
capture equipment originally placed in service by the
applicable entity during a taxable year, and
``(II)(aa) in the case of a taxpayer who makes an
election described in paragraph (1)(C), apply to the
taxable year in which such equipment is placed in
service and the 4 subsequent taxable years with respect
to such equipment which end before January 1, 2033, and
``(bb) in any other case, apply to such taxable
year and to any subsequent taxable year which is within
the period described in paragraph (3)(A) or (4)(A) of
section 45Q(a) with respect to such equipment.
``(ii) Prohibition on transfer.--For any taxable year
described in clause (i)(II)(aa) with respect to carbon
capture equipment, no election may be made by the taxpayer
under section 6418(a) for such taxable year with respect to
such equipment for purposes of the credit described in
subsection (b)(3).
``(iii) Revocation of election.--In the case of a
taxpayer who makes an election described in paragraph
(1)(C) with respect to carbon capture equipment, such
taxpayer may, at any time during the period described in
clause (i)(II)(aa), revoke the application of such election
with respect to such equipment for any subsequent taxable
years during such period. Any such election, if made, shall
apply to the applicable year specified in such election and
each subsequent taxable year within the period described in
clause (i)(II)(aa). Any election under this subclause may
not be subsequently revoked.
``(D) Credit for production of clean hydrogen.--
``(i) In general.--In the case of the credit described
in subsection (b)(5), any election under subsection (a)
shall--
``(I) apply separately with respect to each
qualified clean hydrogen production facility,
``(II) be made for the taxable year in which such
facility is placed in service (or within the 1-year
period subsequent to the date of enactment of this
section in the case of facilities placed in service
before December 31, 2022), and
``(III)(aa) in the case of a taxpayer who makes an
election described in paragraph (1)(B), apply to such
taxable year and the 4 subsequent taxable years with
respect to such facility which end before January 1,
2033, and
``(bb) in any other case, apply to such taxable
year and all subsequent taxable years with respect to
such facility.
``(ii) Prohibition on transfer.--For any taxable year
described in clause (i)(III)(aa) with respect to a
qualified clean hydrogen production facility, no election
may be made by the taxpayer under section 6418(a) for such
taxable year with respect to such facility for purposes of
the credit described in subsection (b)(5).
``(iii) Revocation of election.--In the case of a
taxpayer who makes an election described in paragraph
(1)(B) with respect to a qualified clean hydrogen
production facility, such taxpayer may, at any time during
the period described in clause (i)(III)(aa), revoke the
application of such election with respect to such facility
for any subsequent taxable years during such period. Any
such election, if made, shall apply to the applicable year
specified in such election and each subsequent taxable year
within the period described in clause (i)(II)(aa). Any
election under this subclause may not be subsequently
revoked.
``(E) Clean electricity production credit.--In the case of
the credit described in subsection (b)(8), any election under
subsection (a) shall--
``(i) apply separately with respect to each qualified
facility,
``(ii) be made for the taxable year in which such
facility is placed in service, and
``(iii) shall apply to such taxable year and to any
subsequent taxable year which is within the period
described in subsection (b)(1)(B) of section 45Y with
respect to such facility.
``(4) Timing.--The payment described in subsection (a) shall be
treated as made on--
``(A) in the case of any government, or political
subdivision, described in paragraph (1) and for which no return
is required under section 6011 or 6033(a), the later of the
date that a return would be due under section 6033(a) if such
government or subdivision were described in that section or the
date on which such government or subdivision submits a claim
for credit or refund (at such time and in such manner as the
Secretary shall provide), and
``(B) in any other case, the later of the due date
(determined without regard to extensions) of the return of tax
for the taxable year or the date on which such return is filed.
``(5) Additional information.--As a condition of, and prior to,
any amount being treated as a payment which is made by an
applicable entity under subsection (a), the Secretary may require
such information or registration as the Secretary deems necessary
for purposes of preventing duplication, fraud, improper payments,
or excessive payments under this section.
``(6) Excessive payment.--
``(A) In general.--In the case of any amount treated as a
payment which is made by the applicable entity under subsection
(a), or the amount of the payment made pursuant to subsection
(c), which the Secretary determines constitutes an excessive
payment, the tax imposed on such entity by chapter 1
(regardless of whether such entity would otherwise be subject
to tax under such chapter) for the taxable year in which such
determination is made shall be increased by an amount equal to
the sum of--
``(i) the amount of such excessive payment, plus
``(ii) an amount equal to 20 percent of such excessive
payment.
``(B) Reasonable cause.--Subparagraph (A)(ii) shall not
apply if the applicable entity demonstrates to the satisfaction
of the Secretary that the excessive payment resulted from
reasonable cause.
``(C) Excessive payment defined.--For purposes of this
paragraph, the term `excessive payment' means, with respect to
a facility or property for which an election is made under this
section for any taxable year, an amount equal to the excess
of--
``(i) the amount treated as a payment which is made by
the applicable entity under subsection (a), or the amount
of the payment made pursuant to subsection (c), with
respect to such facility or property for such taxable year,
over
``(ii) the amount of the credit which, without
application of this section, would be otherwise allowable
(as determined pursuant to paragraph (2) and without regard
to section 38(c)) under this title with respect to such
facility or property for such taxable year.
``(e) Denial of Double Benefit.--In the case of an applicable
entity making an election under this section with respect to an
applicable credit, such credit shall be reduced to zero and shall, for
any other purposes under this title, be deemed to have been allowed to
such entity for such taxable year.
``(f) Mirror Code Possessions.--In the case of any possession of
the United States with a mirror code tax system (as defined in section
24(k)), this section shall not be treated as part of the income tax
laws of the United States for purposes of determining the income tax
law of such possession unless such possession elects to have this
section be so treated.
``(g) Basis Reduction and Recapture.--Except as otherwise provided
in subsection (c)(2)(A), rules similar to the rules of section 50 shall
apply for purposes of this section.
``(h) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary to carry out the purposes of this
section, including guidance to ensure that the amount of the payment or
deemed payment made under this section is commensurate with the amount
of the credit that would be otherwise allowable (determined without
regard to section 38(c)).''.
(b) Transfer of Certain Credits.--Subchapter B of chapter 65, as
amended by subsection (a), is amended by inserting after section 6417
the following new section:
``SEC. 6418. TRANSFER OF CERTAIN CREDITS.
``(a) In General.--In the case of an eligible taxpayer which elects
to transfer all (or any portion specified in the election) of an
eligible credit determined with respect to such taxpayer for any
taxable year to a taxpayer (referred to in this section as the
`transferee taxpayer') which is not related (within the meaning of
section 267(b) or 707(b)(1)) to the eligible taxpayer, the transferee
taxpayer specified in such election (and not the eligible taxpayer)
shall be treated as the taxpayer for purposes of this title with
respect to such credit (or such portion thereof).
``(b) Treatment of Payments Made in Connection With Transfer.--With
respect to any amount paid by a transferee taxpayer to an eligible
taxpayer as consideration for a transfer described in subsection (a),
such consideration--
``(1) shall be required to be paid in cash,
``(2) shall not be includible in gross income of the eligible
taxpayer, and
``(3) with respect to the transferee taxpayer, shall not be
deductible under this title.
``(c) Application to Partnerships and S Corporations.--
``(1) In general.--In the case of any eligible credit
determined with respect to any facility or property held directly
by a partnership or S corporation, if such partnership or S
corporation makes an election under subsection (a) (in such manner
as the Secretary may provide) with respect to such credit--
``(A) any amount received as consideration for a transfer
described in such subsection shall be treated as tax exempt
income for purposes of sections 705 and 1366, and
``(B) a partner's distributive share of such tax exempt
income shall be based on such partner's distributive share of
the otherwise eligible credit for each taxable year.
``(2) Coordination with application at partner or shareholder
level.--In the case of any facility or property held directly by a
partnership or S corporation, no election by any partner or
shareholder shall be allowed under subsection (a) with respect to
any eligible credit determined with respect to such facility or
property.
``(d) Taxable Year in Which Credit Taken Into Account.--In the case
of any credit (or portion thereof) with respect to which an election is
made under subsection (a), such credit shall be taken into account in
the first taxable year of the transferee taxpayer ending with, or
after, the taxable year of the eligible taxpayer with respect to which
the credit was determined.
``(e) Limitations on Election.--
``(1) Time for election.--An election under subsection (a) to
transfer any portion of an eligible credit shall be made not later
than the due date (including extensions of time) for the return of
tax for the taxable year for which the credit is determined, but in
no event earlier than 180 days after the date of the enactment of
this section. Any such election, once made, shall be irrevocable.
``(2) No additional transfers.--No election may be made under
subsection (a) by a transferee taxpayer with respect to any portion
of an eligible credit which has been previously transferred to such
taxpayer pursuant to this section.
``(f) Definitions.--For purposes of this section--
``(1) Eligible credit.--
``(A) In general.--The term `eligible credit' means each of
the following:
``(i) So much of the credit for alternative fuel
vehicle refueling property allowed under section 30C which,
pursuant to subsection (d)(1) of such section, is treated
as a credit listed in section 38(b).
``(ii) The renewable electricity production credit
determined under section 45(a).
``(iii) The credit for carbon oxide sequestration
determined under section 45Q(a).
``(iv) The zero-emission nuclear power production
credit determined under section 45U(a).
``(v) The clean hydrogen production credit determined
under section 45V(a).
``(vi) The advanced manufacturing production credit
determined under section 45X(a).
``(vii) The clean electricity production credit
determined under section 45Y(a).
``(viii) The clean fuel production credit determined
under section 45Z(a).
``(ix) The energy credit determined under section 48.
``(x) The qualifying advanced energy project credit
determined under section 48C.
``(xi) The clean electricity investment credit
determined under section 48E.
``(B) Election for certain credits.--In the case of any
eligible credit described in clause (ii), (iii), (v), or (vii)
of subparagraph (A), an election under subsection (a) shall be
made--
``(i) separately with respect to each facility for
which such credit is determined, and
``(ii) for each taxable year during the 10-year period
beginning on the date such facility was originally placed
in service (or, in the case of the credit described in
clause (iii), for each year during the 12-year period
beginning on the date the carbon capture equipment was
originally placed in service at such facility).
``(C) Exception for business credit carryforwards or
carrybacks.--The term `eligible credit' shall not include any
business credit carryforward or business credit carryback
determined under section 39.
``(2) Eligible taxpayer.--The term `eligible taxpayer' means
any taxpayer which is not described in section 6417(d)(1)(A).
``(g) Special Rules.--For purposes of this section--
``(1) Additional information.--As a condition of, and prior to,
any transfer of any portion of an eligible credit pursuant to
subsection (a), the Secretary may require such information
(including, in such form or manner as is determined appropriate by
the Secretary, such information returns) or registration as the
Secretary deems necessary for purposes of preventing duplication,
fraud, improper payments, or excessive payments under this section.
``(2) Excessive credit transfer.--
``(A) In general.--In the case of any portion of an
eligible credit which is transferred to a transferee taxpayer
pursuant to subsection (a) which the Secretary determines
constitutes an excessive credit transfer, the tax imposed on
the transferee taxpayer by chapter 1 (regardless of whether
such entity would otherwise be subject to tax under such
chapter) for the taxable year in which such determination is
made shall be increased by an amount equal to the sum of--
``(i) the amount of such excessive credit transfer,
plus
``(ii) an amount equal to 20 percent of such excessive
credit transfer.
``(B) Reasonable cause.--Subparagraph (A)(ii) shall not
apply if the transferee taxpayer demonstrates to the
satisfaction of the Secretary that the excessive credit
transfer resulted from reasonable cause.
``(C) Excessive credit transfer defined.--For purposes of
this paragraph, the term `excessive credit transfer' means,
with respect to a facility or property for which an election is
made under subsection (a) for any taxable year, an amount equal
to the excess of--
``(i) the amount of the eligible credit claimed by the
transferee taxpayer with respect to such facility or
property for such taxable year, over
``(ii) the amount of such credit which, without
application of this section, would be otherwise allowable
under this title with respect to such facility or property
for such taxable year.
``(3) Basis reduction; notification of recapture.--In the case
of any election under subsection (a) with respect to any portion of
an eligible credit described in clauses (ix) through (xi) of
subsection (f)(1)(A)--
``(A) subsection (c) of section 50 shall apply to the
applicable investment credit property (as defined in subsection
(a)(5) of such section) as if such eligible credit was allowed
to the eligible taxpayer, and
``(B) if, during any taxable year, the applicable
investment credit property (as defined in subsection (a)(5) of
section 50) is disposed of, or otherwise ceases to be
investment credit property with respect to the eligible
taxpayer, before the close of the recapture period (as
described in subsection (a)(1) of such section)--
``(i) such eligible taxpayer shall provide notice of
such occurrence to the transferee taxpayer (in such form
and manner as the Secretary shall prescribe), and
``(ii) the transferee taxpayer shall provide notice of
the recapture amount (as defined in subsection (c)(2) of
such section), if any, to the eligible taxpayer (in such
form and manner as the Secretary shall prescribe).
``(4) Prohibition on election or transfer with respect to
progress expenditures.--This section shall not apply with respect
to any amount of an eligible credit which is allowed pursuant to
rules similar to the rules of subsections (c)(4) and (d) of section
46 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).
``(h) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary to carry out the purposes of this
section, including regulations or other guidance providing rules for
determining a partner's distributive share of the tax exempt income
described in subsection (c)(1).''.
(c) Real Estate Investment Trusts.--Section 50(d) is amended by
adding at the end the following: ``In the case of a real estate
investment trust making an election under section 6418, paragraphs
(1)(B) and (2)(B) of the section 46(e) referred to in paragraph (1) of
this subsection shall not apply to any investment credit property of
such real estate investment trust to which such election applies.''.
(d) 3-year Carryback for Applicable Credits.--Section 39(a) is
amended by adding at the end the following:
``(4) 3-year carryback for applicable credits.--Notwithstanding
subsection (d), in the case of any applicable credit (as defined in
section 6417(b))--
``(A) this section shall be applied separately from the
business credit (other than the applicable credit),
``(B) paragraph (1) shall be applied by substituting `each
of the 3 taxable years' for `the taxable year' in subparagraph
(A) thereof, and
``(C) paragraph (2) shall be applied--
``(i) by substituting `23 taxable years' for `21
taxable years' in subparagraph (A) thereof, and
``(ii) by substituting `22 taxable years' for `20
taxable years' in subparagraph (B) thereof.''.
(e) Clerical Amendment.--The table of sections for subchapter B of
chapter 65 is amended by inserting after the item relating to section
6416 the following new items:
``Sec. 6417. Elective payment of applicable credits.
``Sec. 6418. Transfer of certain credits.''.
(f) Gross-up of Direct Spending.--Beginning in fiscal year 2023 and
each fiscal year thereafter, the portion of any payment made to a
taxpayer pursuant to an election under section 6417 of the Internal
Revenue Code of 1986, or any amount treated as a payment which is made
by the taxpayer under subsection (a) of such section, that is direct
spending shall be increased by 6.0445 percent.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 13802. APPROPRIATIONS.
Immediately upon the enactment of this Act, in addition to amounts
otherwise available, there are appropriated for fiscal year 2022, out
of any money in the Treasury not otherwise appropriated, $500,000,000
to remain available until September 30, 2031, for necessary expenses
for the Internal Revenue Service to carry out this subtitle (and the
amendments made by this subtitle), which shall supplement and not
supplant any other appropriations that may be available for this
purpose.
PART 9--OTHER PROVISIONS
SEC. 13901. PERMANENT EXTENSION OF TAX RATE TO FUND BLACK LUNG
DISABILITY TRUST FUND.
(a) In General.--Section 4121 is amended by striking subsection
(e).
(b) Effective Date.--The amendment made by this section shall apply
to sales in calendar quarters beginning after the date which is 1 day
after the date of enactment of this Act.
SEC. 13902. INCREASE IN RESEARCH CREDIT AGAINST PAYROLL TAX FOR SMALL
BUSINESSES.
(a) In General.--Clause (i) of section 41(h)(4)(B) is amended--
(1) by striking ``Amount.--The amount'' and inserting
``Amount.--
``(I) In general.--The amount'', and
(2) by adding at the end the following new subclause:
``(II) Increase.--In the case of taxable years
beginning after December 31, 2022, the amount in
subclause (I) shall be increased by $250,000.''.
(b) Allowance of Credit.--
(1) In general.--Paragraph (1) of section 3111(f) is amended--
(A) by striking ``for a taxable year, there shall be
allowed'' and inserting ``for a taxable year--
``(A) there shall be allowed'',
(B) by striking ``equal to the'' and inserting ``equal to
so much of the'',
(C) by striking the period at the end and inserting ``as
does not exceed the limitation of subclause (I) of section
41(h)(4)(B)(i) (applied without regard to subclause (II)
thereof), and'', and
(D) by adding at the end the following new subparagraph:
``(B) there shall be allowed as a credit against the tax
imposed by subsection (b) for the first calendar quarter which
begins after the date on which the taxpayer files the return
specified in section 41(h)(4)(A)(ii) an amount equal to so much
of the payroll tax credit portion determined under section
41(h)(2) as is not allowed as a credit under subparagraph
(A).''.
(2) Limitation.--Paragraph (2) of section 3111(f) is amended--
(A) by striking ``paragraph (1)'' and inserting ``paragraph
(1)(A)'', and
(B) by inserting ``, and the credit allowed by paragraph
(1)(B) shall not exceed the tax imposed by subsection (b) for
any calendar quarter,'' after ``calendar quarter''.
(3) Carryover.--Paragraph (3) of section 3111(f) is amended by
striking ``the credit'' and inserting ``any credit''.
(4) Deduction allowed.--Paragraph (4) of section 3111(f) is
amended--
(A) by striking ``credit'' and inserting ``credits'', and
(B) by striking ``subsection (a)'' and inserting
``subsection (a) or (b)''.
(c) Aggregation Rules.--Clause (ii) of section 41(h)(5)(B) is
amended by striking ``the $250,000 amount'' and inserting ``each of the
$250,000 amounts''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2022.
SEC. 13903. REINSTATEMENT OF LIMITATION RULES FOR DEDUCTION FOR STATE
AND LOCAL, ETC., TAXES; EXTENSION OF LIMITATION ON EXCESS BUSINESS
LOSSES OF NONCORPORATE TAXPAYERS.
(a) Reinstatement of Limitation Rules for Deduction for State and
Local, etc., Taxes.--
(1) In general.--Section 164(b)(6), as amended by section
13904, is further amended--
(A) in the heading, by striking ``2026'' and inserting
``2025'', and
(B) by striking ``2027'' and inserting ``2026''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2022.
(b) Extension of Limitation on Excess Business Losses of
Noncorporate Taxpayers.--
(1) In general.--Section 461(l)(1) is amended by striking
``January 1, 2027'' each place it appears and inserting ``January
1, 2029''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2026.
SEC. 13904. REMOVAL OF HARMFUL SMALL BUSINESS TAXES; EXTENSION OF
LIMITATION ON DEDUCTION FOR STATE AND LOCAL, ETC., TAXES.
(a) Removal of Harmful Small Business Taxes.--Subparagraph (D) of
section 59(k)(1), as added by section 10101, is amended to read as
follows:
``(D) Special rules for determining applicable corporation
status.--Solely for purposes of determining whether a
corporation is an applicable corporation under this paragraph,
all adjusted financial statement income of persons treated as a
single employer with such corporation under subsection (a) or
(b) of section 52 shall be treated as adjusted financial
statement income of such corporation, and adjusted financial
statement income of such corporation shall be determined
without regard to paragraphs (2)(D)(i) and (11) of section
56A(c).''.
(b) Extension of Limitation on Deduction for State and Local, etc.,
Taxes.--
(1) In general.--Section 164(b)(6) is amended--
(A) in the heading, by striking ``2025'' and inserting
``2026'', and
(B) by striking ``2026'' and inserting ``2027''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31, 2022.
TITLE II--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
Subtitle A--General Provisions
SEC. 20001. DEFINITION OF SECRETARY.
In this title, the term ``Secretary'' means the Secretary of
Agriculture.
Subtitle B--Conservation
SEC. 21001. ADDITIONAL AGRICULTURAL CONSERVATION INVESTMENTS.
(a) Appropriations.--In addition to amounts otherwise available
(and subject to subsection (b)), there are appropriated to the
Secretary, out of any money in the Treasury not otherwise appropriated,
to remain available until September 30, 2031 (subject to the condition
that no such funds may be disbursed after September 30, 2031)--
(1) to carry out, using the facilities and authorities of the
Commodity Credit Corporation, the environmental quality incentives
program under subchapter A of chapter 4 of subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3839aa through 3839aa-
8)--
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $1,750,000,000 for fiscal year 2024;
(iii) $3,000,000,000 for fiscal year 2025; and
(iv) $3,450,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the funds
that--
(i) section 1240B(f)(1) of the Food Security Act of
1985 (16 U.S.C. 3839aa-2(f)(1)) shall not apply;
(ii) section 1240H(c)(2) of the Food Security Act of
1985 (16 U.S.C. 3839aa-8(c)(2)) shall be applied--
(I) by substituting ``$50,000,000'' for
``$25,000,000''; and
(II) with the Secretary prioritizing proposals that
utilize diet and feed management to reduce enteric
methane emissions from ruminants; and
(iii) the funds shall be available for 1 or more
agricultural conservation practices or enhancements that
the Secretary determines directly improve soil carbon,
reduce nitrogen losses, or reduce, capture, avoid, or
sequester carbon dioxide, methane, or nitrous oxide
emissions, associated with agricultural production;
(2) to carry out, using the facilities and authorities of the
Commodity Credit Corporation, the conservation stewardship program
under subchapter B of that chapter (16 U.S.C. 3839aa-21 through
3839aa-25)--
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $500,000,000 for fiscal year 2024;
(iii) $1,000,000,000 for fiscal year 2025; and
(iv) $1,500,000,000 for fiscal year 2026; and
(B) subject to the condition on the use of the funds that
the funds shall only be available for 1 or more agricultural
conservation practices, enhancements, or bundles that the
Secretary determines directly improve soil carbon, reduce
nitrogen losses, or reduce, capture, avoid, or sequester carbon
dioxide, methane, or nitrous oxide emissions, associated with
agricultural production;
(3) to carry out, using the facilities and authorities of the
Commodity Credit Corporation, the agricultural conservation
easement program under subtitle H of title XII of that Act (16
U.S.C. 3865 through 3865d) for easements or interests in land that
will most reduce, capture, avoid, or sequester carbon dioxide,
methane, or nitrous oxide emissions associated with land eligible
for the program--
(A) $100,000,000 for fiscal year 2023;
(B) $200,000,000 for fiscal year 2024;
(C) $500,000,000 for fiscal year 2025; and
(D) $600,000,000 for fiscal year 2026; and
(4) to carry out, using the facilities and authorities of the
Commodity Credit Corporation, the regional conservation partnership
program under subtitle I of title XII of that Act (16 U.S.C. 3871
through 3871f)--
(A)(i) $250,000,000 for fiscal year 2023;
(ii) $800,000,000 for fiscal year 2024;
(iii) $1,500,000,000 for fiscal year 2025; and
(iv) $2,400,000,000 for fiscal year 2026; and
(B) subject to the conditions on the use of the funds
that--
(i) section 1271C(d)(2)(B) of the Food Security Act of
1985 (16 U.S.C. 3871c(d)(2)(B)) shall not apply; and
(ii) the Secretary shall prioritize partnership
agreements under section 1271C(d) of the Food Security Act
of 1985 (16 U.S.C. 3871c(d)) that support the
implementation of conservation projects that assist
agricultural producers and nonindustrial private forestland
owners in directly improving soil carbon, reducing nitrogen
losses, or reducing, capturing, avoiding, or sequestering
carbon dioxide, methane, or nitrous oxide emissions,
associated with agricultural production.
(b) Conditions.--The funds made available under subsection (a) are
subject to the conditions that the Secretary shall not--
(1) enter into any agreement--
(A) that is for a term extending beyond September 30, 2031;
or
(B) under which any payment could be outlaid or funds
disbursed after September 30, 2031; or
(2) use any other funds available to the Secretary to satisfy
obligations initially made under this section.
(c) Conforming Amendments.--
(1) Section 1240B of the Food Security Act of 1985 (16 U.S.C.
3839aa-2) is amended--
(A) in subsection (a), by striking ``2023'' and inserting
``2031''; and
(B) in subsection (f)(2)(B)--
(i) in the subparagraph heading, by striking ``2023''
and inserting ``2031''; and
(ii) by striking ``2023'' and inserting ``2031''.
(2) Section 1240H of the Food Security Act of 1985 (16 U.S.C.
3839aa-8) is amended by striking ``2023'' each place it appears and
inserting ``2031''.
(3) Section 1240J(a) of the Food Security Act of 1985 (16
U.S.C. 3839aa-22(a)) is amended, in the matter preceding paragraph
(1), by striking ``2023'' and inserting ``2031''.
(4) Section 1240L(h)(2)(A) of the Food Security Act of 1985 (16
U.S.C. 3839aa-24(h)(2)(A)) is amended by striking ``2023'' and
inserting ``2031''.
(5) Section 1241 of the Food Security Act of 1985 (16 U.S.C.
3841) is amended--
(A) in subsection (a)--
(i) in the matter preceding paragraph (1), by striking
``2023'' and inserting ``2031'';
(ii) in paragraph (2)(F), by striking ``2023'' and
inserting ``2031''; and
(iii) in paragraph (3), by striking ``fiscal year
2023'' each place it appears and inserting ``each of fiscal
years 2023 through 2031'';
(B) in subsection (b), by striking ``2023'' and inserting
``2031''; and
(C) in subsection (h)--
(i) in paragraph (1)(B), in the subparagraph heading,
by striking ``2023'' and inserting ``2031''; and
(ii) by striking ``2023'' each place it appears and
inserting ``2031''.
(6) Section 1244(n)(3)(A) of the Food Security Act of 1985 (16
U.S.C. 3844(n)(3)(A)) is amended by striking ``2023'' and inserting
``2031''.
(7) Section 1271D(a) of the Food Security Act of 1985 (16
U.S.C. 3871d(a)) is amended by striking ``2023'' and inserting
``2031''.
SEC. 21002. CONSERVATION TECHNICAL ASSISTANCE.
(a) Appropriations.--In addition to amounts otherwise available
(and subject to subsection (b)), there are appropriated to the
Secretary for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, to remain available until September 30, 2031
(subject to the condition that no such funds may be disbursed after
September 30, 2031)--
(1) $1,000,000,000 to provide conservation technical assistance
through the Natural Resources Conservation Service; and
(2) $300,000,000 to carry out a program to quantify carbon
sequestration and carbon dioxide, methane, and nitrous oxide
emissions, through which the Natural Resources Conservation Service
shall collect field-based data to assess the carbon sequestration
and reduction in carbon dioxide, methane, and nitrous oxide
emissions outcomes associated with activities carried out pursuant
to this section and use the data to monitor and track those carbon
sequestration and emissions trends through the Greenhouse Gas
Inventory and Assessment Program of the Department of Agriculture.
(b) Conditions.--The funds made available under this section are
subject to the conditions that the Secretary shall not--
(1) enter into any agreement--
(A) that is for a term extending beyond September 30, 2031;
or
(B) under which any payment could be outlaid or funds
disbursed after September 30, 2031;
(2) use any other funds available to the Secretary to satisfy
obligations initially made under this section; or
(3) interpret this section to authorize funds of the Commodity
Credit Corporation for activities under this section if such funds
are not expressly authorized or currently expended for such
purposes.
(c) Administrative Costs.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2028, for
administrative costs of the agencies and offices of the Department of
Agriculture for costs related to implementing this section.
Subtitle C--Rural Development and Agricultural Credit
SEC. 22001. ADDITIONAL FUNDING FOR ELECTRIC LOANS FOR RENEWABLE ENERGY.
Section 9003 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8103) is amended by adding at the end the following:
``(h) Additional Funding for Electric Loans for Renewable Energy.--
``(1) Appropriations.--Notwithstanding subsections (a) through
(e), and (g), in addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $1,000,000,000,
to remain available until September 30, 2031, for the cost of loans
under section 317 of the Rural Electrification Act of 1936 (7
U.S.C. 940g), including for projects that store electricity that
support the types of eligible projects under that section, which
shall be forgiven in an amount that is not greater than 50 percent
of the loan based on how the borrower and the project meets the
terms and conditions for loan forgiveness consistent with the
purposes of that section established by the Secretary, except as
provided in paragraph (3).
``(2) Limitation.--The Secretary shall not enter into any loan
agreement pursuant this subsection that could result in
disbursements after September 30, 2031.
``(3) Exception.--The Secretary shall establish criteria for
waiving the 50 percent limitation described in paragraph (1).''.
SEC. 22002. RURAL ENERGY FOR AMERICA PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary, out of any money in the
Treasury not otherwise appropriated, for eligible projects under
section 9007 of the Farm Security and Rural Investment Act of 2002 (7
U.S.C. 8107), and notwithstanding section 9007(c)(3)(A) of that Act,
the amount of a grant shall not exceed 50 percent of the cost of the
activity carried out using the grant funds--
(1) $820,250,000 for fiscal year 2022, to remain available
until September 30, 2031; and
(2) $180,276,500 for each of fiscal years 2023 through 2027, to
remain available until September 30, 2031.
(b) Underutilized Renewable Energy Technologies.--In addition to
amounts otherwise available, there is appropriated to the Secretary,
out of any money in the Treasury not otherwise appropriated, to provide
grants and loans guaranteed by the Secretary (including the costs of
such loans) under the program described in subsection (a) relating to
underutilized renewable energy technologies, and to provide technical
assistance for applying to the program described in subsection (a),
including for underutilized renewable energy technologies,
notwithstanding section 9007(c)(3)(A) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8107(c)(3)(A)), the amount of a grant
shall not exceed 50 percent of the cost of the activity carried out
using the grant funds, and to the extent the following amounts remain
available at the end of each fiscal year, the Secretary shall use such
amounts in accordance with subsection (a)--
(1) $144,750,000 for fiscal year 2022, to remain available
until September 30, 2031; and
(2) $31,813,500 for each of fiscal years 2023 through 2027, to
remain available until September 30, 2031.
(c) Limitation.--The Secretary shall not enter into, pursuant to
this section--
(1) any loan agreement that may result in a disbursement after
September 30, 2031; or
(2) any grant agreement that may result in any outlay after
September 30, 2031.
SEC. 22003. BIOFUEL INFRASTRUCTURE AND AGRICULTURE PRODUCT MARKET
EXPANSION.
Section 9003 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8103) (as amended by section 22001) is amended by adding at
the end the following:
``(i) Biofuel Infrastructure and Agriculture Product Market
Expansion.--
``(1) Appropriation.--Notwithstanding subsections (a) through
(e) and subsection (g), in addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $500,000,000,
to remain available until September 30, 2031, to carry out this
subsection.
``(2) Use of funds.--The Secretary shall use the amounts made
available by paragraph (1) to provide grants, for which the Federal
share shall be not more than 75 percent of the total cost of
carrying out a project for which the grant is provided, on a
competitive basis, to increase the sale and use of agricultural
commodity-based fuels through infrastructure improvements for
blending, storing, supplying, or distributing biofuels, except for
transportation infrastructure not on location where such biofuels
are blended, stored, supplied, or distributed--
``(A) by installing, retrofitting, or otherwise upgrading
fuel dispensers or pumps and related equipment, storage tank
system components, and other infrastructure required at a
location related to dispensing certain biofuel blends to ensure
the increased sales of fuels with high levels of commodity-
based ethanol and biodiesel that are at or greater than the
levels required in the Notice of Funding Availability for the
Higher Blends Infrastructure Incentive Program for Fiscal Year
2020, published in the Federal Register (85 Fed. Reg. 26656),
as determined by the Secretary; and
``(B) by building and retrofitting home heating oil
distribution centers or equivalent entities and distribution
systems for ethanol and biodiesel blends.''.
SEC. 22004. USDA ASSISTANCE FOR RURAL ELECTRIC COOPERATIVES.
Section 9003 of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8103) (as amended by section 22003) is amended by adding at
the end the following:
``(j) USDA Assistance for Rural Electric Cooperatives.--
``(1) Appropriation.--Notwithstanding subsections (a) through
(e) and (g), in addition to amounts otherwise available, there is
appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $9,700,000,000,
to remain available until September 30, 2031, for the long-term
resiliency, reliability, and affordability of rural electric
systems by providing to an eligible entity (defined as an electric
cooperative described in section 501(c)(12) or 1381(a)(2) of the
Internal Revenue Code of 1986 and is or has been a Rural Utilities
Service electric loan borrower pursuant to the Rural
Electrification Act of 1936 or serving a predominantly rural area
or a wholly or jointly owned subsidiary of such electric
cooperative) loans, modifications of loans, the cost of loans and
modifications, and other financial assistance to achieve the
greatest reduction in carbon dioxide, methane, and nitrous oxide
emissions associated with rural electric systems through the
purchase of renewable energy, renewable energy systems, zero-
emission systems, and carbon capture and storage systems, to deploy
such systems, or to make energy efficiency improvements to electric
generation and transmission systems of the eligible entity after
the date of enactment of this subsection.
``(2) Limitation.--No eligible entity may receive an amount
equal to more than 10 percent of the total amount made available by
this subsection.
``(3) Requirement.--The amount of a grant under this subsection
shall be not more than 25 percent of the total project costs of the
eligible entity carrying out a project using a grant under this
subsection.
``(4) Prohibition.--Nothing in this subsection shall be
interpreted to authorize funds of the Commodity Credit Corporation
for activities under this subsection if such funds are not
expressly authorized or currently expended for such purposes.
``(5) Disbursements.--The Secretary shall not enter into,
pursuant to this subsection--
``(A) any loan agreement that may result in a disbursement
after September 30, 2031; or
``(B) any grant agreement that may result in any outlay
after September 30, 2031.''.
SEC. 22005. ADDITIONAL USDA RURAL DEVELOPMENT ADMINISTRATIVE FUNDS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $100,000,000, to remain available until
September 30, 2031, for administrative costs and salaries and expenses
for the Rural Development mission area and administrative costs of the
agencies and offices of the Department for costs related to
implementing this subtitle.
SEC. 22006. FARM LOAN IMMEDIATE RELIEF FOR BORROWERS WITH AT-RISK
AGRICULTURAL OPERATIONS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of amounts in the Treasury
not otherwise appropriated, $3,100,000,000, to remain available until
September 30, 2031, to provide payments to, for the cost of loans or
loan modifications for, or to carry out section 331(b)(4) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1981(b)(4)) with
respect to distressed borrowers of direct or guaranteed loans
administered by the Farm Service Agency under subtitle A, B, or C of
that Act (7 U.S.C. 1922 through 1970). In carrying out this section,
the Secretary shall provide relief to those borrowers whose
agricultural operations are at financial risk as expeditiously as
possible, as determined by the Secretary.
SEC. 22007. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED FARMERS,
RANCHERS, AND FORESTERS.
Section 1006 of the American Rescue Plan Act of 2021 (7 U.S.C. 2279
note; Public Law 117-2) is amended to read as follows:
``SEC. 1006. USDA ASSISTANCE AND SUPPORT FOR UNDERSERVED FARMERS,
RANCHERS, FORESTERS.
``(a) Technical and Other Assistance.--In addition to amounts
otherwise available, there is appropriated to the Secretary of
Agriculture for fiscal year 2022, to remain available until September
30, 2031, out of any money in the Treasury not otherwise appropriated,
$125,000,000 to provide outreach, mediation, financial training,
capacity building training, cooperative development and agricultural
credit training and support, and other technical assistance on issues
concerning food, agriculture, agricultural credit, agricultural
extension, rural development, or nutrition to underserved farmers,
ranchers, or forest landowners, including veterans, limited resource
producers, beginning farmers and ranchers, and farmers, ranchers, and
forest landowners living in high poverty areas.
``(b) Land Loss Assistance.--In addition to amounts otherwise
available, there is appropriated to the Secretary of Agriculture for
fiscal year 2022, to remain available until September 30, 2031, out of
any money in the Treasury not otherwise appropriated, $250,000,000 to
provide grants and loans to eligible entities, as determined by the
Secretary, to improve land access (including heirs' property and
fractionated land issues) for underserved farmers, ranchers, and forest
landowners, including veterans, limited resource producers, beginning
farmers and ranchers, and farmers, ranchers, and forest landowners
living in high poverty areas.
``(c) Equity Commissions.--In addition to amounts otherwise
available, there is appropriated to the Secretary of Agriculture for
fiscal year 2022, to remain available until September 30, 2031, out of
any money in the Treasury not otherwise appropriated, $10,000,000 to
fund the activities of one or more equity commissions that will address
racial equity issues within the Department of Agriculture and the
programs of the Department of Agriculture.
``(d) Research, Education, and Extension.--In addition to amounts
otherwise available, there is appropriated to the Secretary of
Agriculture for fiscal year 2022, to remain available until September
30, 2031, out of any money in the Treasury not otherwise appropriated,
$250,000,000 to support and supplement agricultural research,
education, and extension, as well as scholarships and programs that
provide internships and pathways to agricultural sector or Federal
employment, for 1890 Institutions (as defined in section 2 of the
Agricultural, Research, Extension, and Education Reform Act of 1998 (7
U.S.C. 7601)), 1994 Institutions (as defined in section 532 of the
Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note;
Public Law 103-382)), Alaska Native serving institutions and Native
Hawaiian serving institutions eligible to receive grants under
subsections (a) and (b), respectively, of section 1419B of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3156), Hispanic-serving institutions eligible to receive grants
under section 1455 of the National Agricultural Research, Extension,
and Teaching Policy Act of 1977 (7 U.S.C. 3241), and the insular area
institutions of higher education located in the territories of the
United States, as referred to in section 1489 of the National
Agricultural Research, Extension, and Teaching Policy Act of 1977 (7
U.S.C. 3361).
``(e) Discrimination Financial Assistance.--In addition to amounts
otherwise available, there is appropriated to the Secretary of
Agriculture for fiscal year 2022, to remain available until September
30, 2031, out of any money in the Treasury not otherwise appropriated,
$2,200,000,000 for a program to provide financial assistance, including
the cost of any financial assistance, to farmers, ranchers, or forest
landowners determined to have experienced discrimination prior to
January 1, 2021, in Department of Agriculture farm lending programs,
under which the amount of financial assistance provided to a recipient
may be not more than $500,000, as determined to be appropriate based on
any consequences experienced from the discrimination, which program
shall be administered through 1 or more qualified nongovernmental
entities selected by the Secretary subject to standards set and
enforced by the Secretary.
``(f) Administrative Costs.--In addition to amounts otherwise
available, there is appropriated to the Secretary of Agriculture for
fiscal year 2022, to remain available until September 30, 2031, out of
any money in the Treasury not otherwise appropriated, $24,000,000 for
administrative costs, including training employees, of the agencies and
offices of the Department of Agriculture to carry out this section.
``(g) Limitation.--The funds made available under this section are
subject to the condition that the Secretary shall not--
``(1) enter into any agreement under which any payment could be
outlaid or funds disbursed after September 30, 2031; or
``(2) use any other funds available to the Secretary to satisfy
obligations initially made under this section.''.
SEC. 22008. REPEAL OF FARM LOAN ASSISTANCE.
Section 1005 of the American Rescue Plan Act of 2021 (7 U.S.C. 1921
note; Public Law 117-2) is repealed.
Subtitle D--Forestry
SEC. 23001. NATIONAL FOREST SYSTEM RESTORATION AND FUELS REDUCTION
PROJECTS.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2031--
(1) $1,800,000,000 for hazardous fuels reduction projects on
National Forest System land within the wildland-urban interface;
(2) $200,000,000 for vegetation management projects on National
Forest System land carried out in accordance with a plan developed
under section 303(d)(1) or 304(a)(3) of the Healthy Forests
Restoration Act of 2003 (16 U.S.C. 6542(d)(1) or 6543(a)(3));
(3) $100,000,000 to provide for environmental reviews by the
Chief of the Forest Service in satisfying the obligations of the
Chief of the Forest Service under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 through 4370m-12); and
(4) $50,000,000 for the protection of old-growth forests on
National Forest System land and to complete an inventory of old-
growth forests and mature forests within the National Forest
System.
(b) Restrictions.--None of the funds made available by paragraph
(1) or (2) of subsection (a) may be used for any activity--
(1) conducted in a wilderness area or wilderness study area;
(2) that includes the construction of a permanent road or
motorized trail;
(3) that includes the construction of a temporary road, except
in the case of a temporary road that is decommissioned by the
Secretary not later than 3 years after the earlier of--
(A) the date on which the temporary road is no longer
needed; and
(B) the date on which the project for which the temporary
road was constructed is completed;
(4) inconsistent with the applicable land management plan;
(5) inconsistent with the prohibitions of the rule of the
Forest Service entitled ``Special Areas; Roadless Area
Conservation'' (66 Fed. Reg. 3244 (January 12, 2001)), as modified
by subparts C and D of part 294 of title 36, Code of Federal
Regulations; or
(6) carried out on any land that is not National Forest System
land, including other forested land on Federal, State, Tribal, or
private land.
(c) Limitations.--Nothing in this section shall be interpreted to
authorize funds of the Commodity Credit Corporation for activities
under this section if such funds are not expressly authorized or
currently expended for such purposes.
(d) Cost-sharing Waiver.--
(1) In general.--The non-Federal cost-share requirement of a
project described in paragraph (2) may be waived at the discretion
of the Secretary.
(2) Project described.--A project referred to in paragraph (1)
is a project that--
(A) is carried out using funds made available under this
section;
(B) requires a partnership agreement, including a
cooperative agreement or mutual interest agreement; and
(C) is subject to a non-Federal cost-share requirement.
(e) Definitions.--In this section:
(1) Decommission.--The term ``decommission'' means, with
respect to a road--
(A) reestablishing native vegetation on the road;
(B) restoring any natural drainage, watershed function, or
other ecological processes that were disrupted or adversely
impacted by the road by removing or hydrologically
disconnecting the road prism and reestablishing stable slope
contours; and
(C) effectively blocking the road to vehicular traffic,
where feasible.
(2) Ecological integrity.--The term ``ecological integrity''
has the meaning given the term in section 219.19 of title 36, Code
of Federal Regulations (as in effect on the date of enactment of
this Act).
(3) Hazardous fuels reduction project.--The term ``hazardous
fuels reduction project'' means an activity, including the use of
prescribed fire, to protect structures and communities from
wildfire that is carried out on National Forest System land.
(4) Restoration.--The term ``restoration'' has the meaning
given the term in section 219.19 of title 36, Code of Federal
Regulations (as in effect on the date of enactment of this Act).
(5) Vegetation management project.--The term ``vegetation
management project'' means an activity carried out on National
Forest System land to enhance the ecological integrity and achieve
the restoration of a forest ecosystem through the removal of
vegetation, the use of prescribed fire, the restoration of aquatic
habitat, or the decommissioning of an unauthorized, temporary, or
system road.
(6) Wildland-urban interface.--The term ``wildland-urban
interface'' has the meaning given the term in section 101 of the
Healthy Forests Restoration Act of 2003 (16 U.S.C. 6511).
SEC. 23002. COMPETITIVE GRANTS FOR NON-FEDERAL FOREST LANDOWNERS.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2031--
(1) $150,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2109a) for providing through that program a cost share to
carry out climate mitigation or forest resilience practices in the
case of underserved forest landowners, subject to the condition
that subsection (h) of that section shall not apply;
(2) $150,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2109a) for providing through that program grants to support
the participation of underserved forest landowners in emerging
private markets for climate mitigation or forest resilience,
subject to the condition that subsection (h) of that section shall
not apply;
(3) $100,000,000 for the competitive grant program under
section 13A of the Cooperative Forestry Assistance Act of 1978 (16
U.S.C. 2109a) for providing through that program grants to support
the participation of forest landowners who own less than 2,500
acres of forest land in emerging private markets for climate
mitigation or forest resilience, subject to the condition that
subsection (h) of that section shall not apply;
(4) $50,000,000 for the competitive grant program under section
13A of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.
2109a) to provide grants to states and other eligible entities to
provide payments to owners of private forest land for
implementation of forestry practices on private forest land, that
are determined by the Secretary, based on the best available
science, to provide measurable increases in carbon sequestration
and storage beyond customary practices on comparable land, subject
to the conditions that--
(A) those payments shall not preclude landowners from
participation in other public and private sector financial
incentive programs; and
(B) subsection (h) of that section shall not apply; and
(5) $100,000,000 to provide grants under the wood innovation
grant program under section 8643 of the Agriculture Improvement Act
of 2018 (7 U.S.C. 7655d), including for the construction of new
facilities that advance the purposes of the program and for the
hauling of material removed to reduce hazardous fuels to locations
where that material can be utilized, subject to the conditions
that--
(A) the amount of such a grant shall be not more than
$5,000,000; and
(B) notwithstanding subsection (d) of that section, a
recipient of such a grant shall provide funds equal to not less
than 50 percent of the amount received under the grant, to be
derived from non-Federal sources.
(b) Cost-sharing Requirement.--Any partnership agreements,
including cooperative agreements and mutual interest agreements, using
funds made available under this section shall be subject to a non-
Federal cost-share requirement of not less than 20 percent of the
project cost, which may be waived at the discretion of the Secretary.
(c) Limitations.--Nothing in this section shall be interpreted to
authorize funds of the Commodity Credit Corporation for activities
under this section if such funds are not expressly authorized or
currently expended for such purposes.
SEC. 23003. STATE AND PRIVATE FORESTRY CONSERVATION PROGRAMS.
(a) Appropriations.--In addition to amounts otherwise available,
there are appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2031--
(1) $700,000,000 to provide competitive grants to States
through the Forest Legacy Program established under section 7 of
the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103c)
for projects for the acquisition of land and interests in land; and
(2) $1,500,000,000 to provide multiyear, programmatic,
competitive grants to a State agency, a local governmental entity,
an agency or governmental entity of the District of Columbia, an
agency or governmental entity of an insular area (as defined in
section 1404 of the National Agricultural Research, Extension, and
Teaching Policy Act of 1977 (7 U.S.C. 3103)), an Indian Tribe, or a
nonprofit organization through the Urban and Community Forestry
Assistance program established under section 9(c) of the
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2105(c)) for
tree planting and related activities.
(b) Waiver.--Any non-Federal cost-share requirement otherwise
applicable to projects carried out under this section may be waived at
the discretion of the Secretary.
SEC. 23004. LIMITATION.
The funds made available under this subtitle are subject to the
condition that the Secretary shall not--
(1) enter into any agreement--
(A) that is for a term extending beyond September 30, 2031;
or
(B) under which any payment could be outlaid or funds
disbursed after September 30, 2031; or
(2) use any other funds available to the Secretary to satisfy
obligations initially made under this subtitle.
SEC. 23005. ADMINISTRATIVE COSTS.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $100,000,000 to remain available until
September 30, 2031, for administrative costs of the agencies and
offices of the Department of Agriculture for costs related to
implementing this subtitle.
TITLE III--COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS
SEC. 30001. ENHANCED USE OF DEFENSE PRODUCTION ACT OF 1950.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $500,000,000, to remain available until September 30,
2024, to carry out the Defense Production Act of 1950 (50 U.S.C. 4501
et seq.).
SEC. 30002. IMPROVING ENERGY EFFICIENCY OR WATER EFFICIENCY OR CLIMATE
RESILIENCE OF AFFORDABLE HOUSING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') for fiscal year
2022, out of any money in the Treasury not otherwise appropriated--
(1) $837,500,000, to remain available until September 30, 2028,
for the cost of providing direct loans, the costs of modifying such
loans, and for grants, as provided for and subject to terms and
conditions in subsection (b), including to subsidize gross
obligations for the principal amount of such loans, not to exceed
$4,000,000,000, to fund projects that improve energy or water
efficiency, enhance indoor air quality or sustainability, implement
the use of zero-emission electricity generation, low-emission
building materials or processes, energy storage, or building
electrification strategies, or address climate resilience, of an
eligible property;
(2) $60,000,000, to remain available until September 30, 2030,
for the costs to the Secretary for information technology, research
and evaluation, and administering and overseeing the implementation
of this section;
(3) $60,000,000, to remain available until September 30, 2029,
for expenses of contracts or cooperative agreements administered by
the Secretary; and
(4) $42,500,000, to remain available until September 30, 2028,
for energy and water benchmarking of properties eligible to receive
grants or loans under this section, regardless of whether they
actually received such grants or loans, along with associated data
analysis and evaluation at the property and portfolio level, and
the development of information technology systems necessary for the
collection, evaluation, and analysis of such data.
(b) Loan and Grant Terms and Conditions.--Amounts made available
under this section shall be for direct loans, grants, and direct loans
that can be converted to grants to eligible recipients that agree to an
extended period of affordability for the property.
(c) Definitions.--As used in this section--
(1) the term ``eligible recipient'' means any owner or sponsor
of an eligible property; and
(2) the term ``eligible property'' means a property assisted
pursuant to--
(A) section 202 of the Housing Act of 1959 (12 U.S.C.
1701q);
(B) section 202 of the Housing Act of 1959 (former 12
U.S.C. 1701q), as such section existed before the enactment of
the Cranston-Gonzalez National Affordable Housing Act;
(C) section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013);
(D) section 8(b) of the United States Housing Act of 1937
(42 U.S.C. 1437f(b));
(E) section 236 of the National Housing Act (12 U.S.C.
1715z-1); or
(F) a Housing Assistance Payments contract for Project-
Based Rental Assistance in fiscal year 2021.
(d) Waiver.--The Secretary may waive or specify alternative
requirements for any provision of subsection (c) or (bb) of section 8
of the United States Housing Act of 1937 (42 U.S.C. 1437f(c),
1437f(bb)) upon a finding that the waiver or alternative requirement is
necessary to facilitate the use of amounts made available under this
section.
(e) Implementation.--The Secretary shall have the authority to
establish by notice any requirements that the Secretary determines are
necessary for timely and effective implementation of the program and
expenditure of funds appropriated, which requirements shall take effect
upon issuance.
TITLE IV--COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
SEC. 40001. INVESTING IN COASTAL COMMUNITIES AND CLIMATE RESILIENCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the National Oceanic and Atmospheric Administration
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $2,600,000,000, to remain available until September 30,
2026, to provide funding through direct expenditure, contracts, grants,
cooperative agreements, or technical assistance to coastal states (as
defined in paragraph (4) of section 304 of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1453(4))), the District of Columbia, Tribal
Governments, nonprofit organizations, local governments, and
institutions of higher education (as defined in subsection (a) of
section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001(a))),
for the conservation, restoration, and protection of coastal and marine
habitats, resources, Pacific salmon and other marine fisheries, to
enable coastal communities to prepare for extreme storms and other
changing climate conditions, and for projects that support natural
resources that sustain coastal and marine resource dependent
communities, marine fishery and marine mammal stock assessments, and
for related administrative expenses.
(b) Tribal Government Defined.--In this section, the term ``Tribal
Government'' means the recognized governing body of any Indian or
Alaska Native tribe, band, nation, pueblo, village, community,
component band, or component reservation, individually identified
(including parenthetically) in the list published most recently as of
the date of enactment of this subsection pursuant to section 104 of the
Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131).
SEC. 40002. FACILITIES OF THE NATIONAL OCEANIC AND ATMOSPHERIC
ADMINISTRATION AND NATIONAL MARINE SANCTUARIES.
(a) National Oceanic and Atmospheric Administration Facilities.--In
addition to amounts otherwise available, there is appropriated to the
National Oceanic and Atmospheric Administration for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available until September 30, 2026, for the
construction of new facilities, facilities in need of replacement,
piers, marine operations facilities, and fisheries laboratories.
(b) National Marine Sanctuaries Facilities.--In addition to amounts
otherwise available, there is appropriated to the National Oceanic and
Atmospheric Administration for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $50,000,000, to remain
available until September 30, 2026, for the construction of facilities
to support the National Marine Sanctuary System established under
subsection (c) of section 301 of the National Marine Sanctuaries Act
(16 U.S.C. 1431(c)).
SEC. 40003. NOAA EFFICIENT AND EFFECTIVE REVIEWS.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$20,000,000, to remain available until September 30, 2026, to conduct
more efficient, accurate, and timely reviews for planning, permitting
and approval processes through the hiring and training of personnel,
and the purchase of technical and scientific services and new
equipment, and to improve agency transparency, accountability, and
public engagement.
SEC. 40004. OCEANIC AND ATMOSPHERIC RESEARCH AND FORECASTING FOR
WEATHER AND CLIMATE.
(a) Forecasting and Research.--In addition to amounts otherwise
available, there is appropriated to the National Oceanic and
Atmospheric Administration for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $150,000,000, to remain
available until September 30, 2026, to accelerate advances and
improvements in research, observation systems, modeling, forecasting,
assessments, and dissemination of information to the public as it
pertains to ocean and atmospheric processes related to weather, coasts,
oceans, and climate, and to carry out section 102(a) of the Weather
Research and Forecasting Innovation Act of 2017 (15 U.S.C. 8512(a)),
and for related administrative expenses.
(b) Research Grants and Science Information, Products, and
Services.--In addition to amounts otherwise available, there are
appropriated to the National Oceanic and Atmospheric Administration for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, to remain available until September 30, 2026, $50,000,000
for competitive grants to fund climate research as it relates to
weather, ocean, coastal, and atmospheric processes and conditions, and
impacts to marine species and coastal habitat, and for related
administrative expenses.
SEC. 40005. COMPUTING CAPACITY AND RESEARCH FOR WEATHER, OCEANS, AND
CLIMATE.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$190,000,000, to remain available until September 30, 2026, for the
procurement of additional high-performance computing, data processing
capacity, data management, and storage assets, to carry out section
204(a)(2) of the High-Performance Computing Act of 1991 (15 U.S.C.
5524(a)(2)), and for transaction agreements authorized under section
301(d)(1)(A) of the Weather Research and Forecasting Innovation Act of
2017 (15 U.S.C. 8531(d)(1)(A)), and for related administrative
expenses.
SEC. 40006. ACQUISITION OF HURRICANE FORECASTING AIRCRAFT.
In addition to amounts otherwise available, there is appropriated
to the National Oceanic and Atmospheric Administration for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available until September 30, 2026, for the
acquisition of hurricane hunter aircraft under section 413(a) of the
Weather Research and Forecasting Innovation Act of 2017 (15 U.S.C.
8549(a)).
SEC. 40007. ALTERNATIVE FUEL AND LOW-EMISSION AVIATION TECHNOLOGY
PROGRAM.
(a) Appropriation and Establishment.--For purposes of establishing
a competitive grant program for eligible entities to carry out projects
located in the United States that produce, transport, blend, or store
sustainable aviation fuel, or develop, demonstrate, or apply low-
emission aviation technologies, in addition to amounts otherwise
available, there are appropriated to the Secretary for fiscal year
2022, out of any money in the Treasury not otherwise appropriated, to
remain available until September 30, 2026--
(1) $244,530,000 for projects relating to the production,
transportation, blending, or storage of sustainable aviation fuel;
(2) $46,530,000 for projects relating to low-emission aviation
technologies; and
(3) $5,940,000 to fund the award of grants under this section,
and oversight of the program, by the Secretary.
(b) Considerations.--In carrying out subsection (a), the Secretary
shall consider, with respect to a proposed project--
(1) the capacity for the eligible entity to increase the
domestic production and deployment of sustainable aviation fuel or
the use of low-emission aviation technologies among the United
States commercial aviation and aerospace industry;
(2) the projected greenhouse gas emissions from such project,
including emissions resulting from the development of the project,
and the potential the project has to reduce or displace, on a
lifecycle basis, United States greenhouse gas emissions associated
with air travel;
(3) the capacity to create new jobs and develop supply chain
partnerships in the United States;
(4) for projects related to the production of sustainable
aviation fuel, the projected lifecycle greenhouse gas emissions
benefits from the proposed project, which shall include feedstock
and fuel production and potential direct and indirect greenhouse
gas emissions (including resulting from changes in land use); and
(5) the benefits of ensuring a diversity of feedstocks for
sustainable aviation fuel, including the use of waste carbon oxides
and direct air capture.
(c) Cost Share.--The Federal share of the cost of a project carried
out using grant funds under subsection (a) shall be 75 percent of the
total proposed cost of the project, except that such Federal share
shall increase to 90 percent of the total proposed cost of the project
if the eligible entity is a small hub airport or nonhub airport, as
such terms are defined in section 47102 of title 49, United States
Code.
(d) Fuel Emissions Reduction Test.--For purposes of clause (ii) of
subsection (e)(7)(E), the Secretary shall, not later than 2 years after
the date of enactment of this section, adopt at least 1 methodology for
testing lifecycle greenhouse gas emissions that meets the requirements
of such clause.
(e) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a State or local government, including the District of
Columbia, other than an airport sponsor;
(B) an air carrier;
(C) an airport sponsor;
(D) an accredited institution of higher education;
(E) a research institution;
(F) a person or entity engaged in the production,
transportation, blending, or storage of sustainable aviation
fuel in the United States or feedstocks in the United States
that could be used to produce sustainable aviation fuel;
(G) a person or entity engaged in the development,
demonstration, or application of low-emission aviation
technologies; or
(H) nonprofit entities or nonprofit consortia with
experience in sustainable aviation fuels, low-emission aviation
technologies, or other clean transportation research programs.
(2) Feedstock.--The term ``feedstock'' means sources of
hydrogen and carbon not originating from unrefined or refined
petrochemicals.
(3) Induced land-use change values.--The term ``induced land-
use change values'' means the greenhouse gas emissions resulting
from the conversion of land to the production of feedstocks and
from the conversion of other land due to the displacement of crops
or animals for which the original land was previously used.
(4) Lifecycle greenhouse gas emissions.--The term ``lifecycle
greenhouse gas emissions'' means the combined greenhouse gas
emissions from feedstock production, collection of feedstock,
transportation of feedstock to fuel production facilities,
conversion of feedstock to fuel, transportation and distribution of
fuel, and fuel combustion in an aircraft engine, as well as from
induced land-use change values.
(5) Low-emission aviation technologies.--The term ``low-
emission aviation technologies'' means technologies, produced in
the United States, that significantly--
(A) improve aircraft fuel efficiency;
(B) increase utilization of sustainable aviation fuel; or
(C) reduce greenhouse gas emissions produced during
operation of civil aircraft.
(6) Secretary.--The term ``Secretary'' means the Secretary of
Transportation.
(7) Sustainable aviation fuel.--The term ``sustainable aviation
fuel'' means liquid fuel, produced in the United States, that--
(A) consists of synthesized hydrocarbons;
(B) meets the requirements of--
(i) ASTM International Standard D7566; or
(ii) the co-processing provisions of ASTM International
Standard D1655, Annex A1 (or such successor standard);
(C) is derived from biomass (in a similar manner as such
term is defined in section 45K(c)(3) of the Internal Revenue
Code of 1986), waste streams, renewable energy sources, or
gaseous carbon oxides;
(D) is not derived from palm fatty acid distillates; and
(E) achieves at least a 50 percent lifecycle greenhouse gas
emissions reduction in comparison with petroleum-based jet
fuel, as determined by a test that shows--
(i) the fuel production pathway achieves at least a 50
percent reduction of the aggregate attributional core
lifecycle emissions and the induced land-use change values
under a lifecycle methodology for sustainable aviation
fuels similar to that adopted by the International Civil
Aviation Organization with the agreement of the United
States; or
(ii) the fuel production pathway achieves at least a 50
percent reduction of the aggregate attributional core
lifecycle greenhouse gas emissions values and the induced
land-use change values under another methodology that the
Secretary determines is--
(I) reflective of the latest scientific
understanding of lifecycle greenhouse gas emissions;
and
(II) as stringent as the requirement under clause
(i).
TITLE V--COMMITTEE ON ENERGY AND NATURAL RESOURCES
Subtitle A--Energy
PART 1--GENERAL PROVISIONS
SEC. 50111. DEFINITIONS.
In this subtitle:
(1) Greenhouse gas.--The term ``greenhouse gas'' has the
meaning given the term in section 1610(a) of the Energy Policy Act
of 1992 (42 U.S.C. 13389(a)).
(2) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
(3) State.--The term ``State'' means a State, the District of
Columbia, and a United States Insular Area (as that term is defined
in section 50211).
(4) State energy office.--The term ``State energy office'' has
the meaning given the term in section 124(a) of the Energy Policy
Act of 2005 (42 U.S.C. 15821(a)).
(5) State energy program.--The term ``State Energy Program''
means the State Energy Program established pursuant to part D of
title III of the Energy Policy and Conservation Act (42 U.S.C. 6321
through 6326).
PART 2--RESIDENTIAL EFFICIENCY AND ELECTRIFICATION REBATES
SEC. 50121. HOME ENERGY PERFORMANCE-BASED, WHOLE-HOUSE REBATES.
(a) Appropriation.--
(1) In general.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated,
$4,300,000,000, to remain available through September 30, 2031, to
carry out a program to award grants to State energy offices to
develop and implement a HOMES rebate program.
(2) Allocation of funds.--
(A) In general.--The Secretary shall reserve funds made
available under paragraph (1) for each State energy office--
(i) in accordance with the allocation formula for the
State Energy Program in effect on January 1, 2022; and
(ii) to be distributed to a State energy office if the
application of the State energy office under subsection (b)
is approved.
(B) Additional funds.--Not earlier than 2 years after the
date of enactment of this Act, any money reserved under
subparagraph (A) but not distributed under clause (ii) of that
subparagraph shall be redistributed to the State energy offices
operating a HOMES rebate program using a grant received under
this section in proportion to the amount distributed to those
State energy offices under subparagraph (A)(ii).
(3) Administrative expenses.--Of the funds made available under
paragraph (1), the Secretary shall use not more than 3 percent
for--
(A) administrative purposes; and
(B) providing technical assistance relating to activities
carried out under this section.
(b) Application.--A State energy office seeking a grant under this
section shall submit to the Secretary an application that includes a
plan to implement a HOMES rebate program, including a plan--
(1) to use procedures, as approved by the Secretary, for
determining the reductions in home energy use resulting from the
implementation of a home energy efficiency retrofit that are
calibrated to historical energy usage for a home consistent with
BPI 2400, for purposes of modeled performance home rebates;
(2) to use open-source advanced measurement and verification
software, as approved by the Secretary, for determining and
documenting the monthly and hourly (if available) weather-
normalized energy use of a home before and after the implementation
of a home energy efficiency retrofit, for purposes of measured
performance home rebates;
(3) to value savings based on time, location, or greenhouse gas
emissions;
(4) for quality monitoring to ensure that each home energy
efficiency retrofit for which a rebate is provided is documented in
a certificate that--
(A) is provided by the contractor and certified by a third
party to the homeowner; and
(B) details the work performed, the equipment and materials
installed, and the projected energy savings or energy
generation to support accurate valuation of the retrofit;
(5) to provide a contractor performing a home energy efficiency
retrofit or an aggregator who has the right to claim a rebate $200
for each home located in a disadvantaged community that receives a
home energy efficiency retrofit for which a rebate is provided
under the program; and
(6) to ensure that a homeowner or aggregator does not receive a
rebate for the same upgrade through both a HOMES rebate program and
any other Federal grant or rebate program, pursuant to subsection
(c)(7).
(c) HOMES Rebate Program.--
(1) In general.--A HOMES rebate program carried out by a State
energy office receiving a grant pursuant to this section shall
provide rebates to homeowners and aggregators for whole-house
energy saving retrofits begun on or after the date of enactment of
this Act and completed by not later than September 30, 2031.
(2) Amount of rebate.--Subject to paragraph (3), under a HOMES
rebate program, the amount of a rebate shall not exceed--
(A) for individuals and aggregators carrying out energy
efficiency upgrades of single-family homes--
(i) in the case of a retrofit that achieves modeled
energy system savings of not less than 20 percent but less
than 35 percent, the lesser of--
(I) $2,000; and
(II) 50 percent of the project cost;
(ii) in the case of a retrofit that achieves modeled
energy system savings of not less than 35 percent, the
lesser of--
(I) $4,000; and
(II) 50 percent of the project cost; and
(iii) for measured energy savings, in the case of a
home or portfolio of homes that achieves energy savings of
not less than 15 percent--
(I) a payment rate per kilowatt hour saved, or
kilowatt hour-equivalent saved, equal to $2,000 for a
20 percent reduction of energy use for the average home
in the State; or
(II) 50 percent of the project cost;
(B) for multifamily building owners and aggregators
carrying out energy efficiency upgrades of multifamily
buildings--
(i) in the case of a retrofit that achieves modeled
energy system savings of not less than 20 percent but less
than 35 percent, $2,000 per dwelling unit, with a maximum
of $200,000 per multifamily building;
(ii) in the case of a retrofit that achieves modeled
energy system savings of not less than 35 percent, $4,000
per dwelling unit, with a maximum of $400,000 per
multifamily building; or
(iii) for measured energy savings, in the case of a
multifamily building or portfolio of multifamily buildings
that achieves energy savings of not less than 15 percent--
(I) a payment rate per kilowatt hour saved, or
kilowatt hour-equivalent saved, equal to $2,000 for a
20 percent reduction of energy use per dwelling unit
for the average multifamily building in the State; or
(II) 50 percent of the project cost; and
(C) for individuals and aggregators carrying out energy
efficiency upgrades of a single-family home occupied by a low-
or moderate-income household or a multifamily building not less
than 50 percent of the dwelling units of which are occupied by
low- or moderate-income households--
(i) in the case of a retrofit that achieves modeled
energy system savings of not less than 20 percent but less
than 35 percent, the lesser of--
(I) $4,000 per single-family home or dwelling unit;
and
(II) 80 percent of the project cost;
(ii) in the case of a retrofit that achieves modeled
energy system savings of not less than 35 percent, the
lesser of--
(I) $8,000 per single-family home or dwelling unit;
and
(II) 80 percent of the project cost; and
(iii) for measured energy savings, in the case of a
single-family home, multifamily building, or portfolio of
single-family homes or multifamily buildings that achieves
energy savings of not less than 15 percent--
(I) a payment rate per kilowatt hour saved, or
kilowatt hour-equivalent saved, equal to $4,000 for a
20 percent reduction of energy use per single-family
home or dwelling unit, as applicable, for the average
single-family home or multifamily building in the
State; or
(II) 80 percent of the project cost.
(3) Rebates to low- or moderate-income households.--On approval
from the Secretary, notwithstanding paragraph (2), a State energy
office carrying out a HOMES rebate program using a grant awarded
pursuant to this section may increase rebate amounts for low- or
moderate-income households.
(4) Use of funds.--A State energy office that receives a grant
pursuant to this section may use not more than 20 percent of the
grant amount for planning, administration, or technical assistance
related to a HOMES rebate program.
(5) Data access guidelines.--The Secretary shall develop and
publish guidelines for States relating to residential electric and
natural gas energy data sharing.
(6) Exemption.--Activities carried out by a State energy office
using a grant awarded pursuant to this section shall not be subject
to the expenditure prohibitions and limitations described in
section 420.18 of title 10, Code of Federal Regulations.
(7) Prohibition on combining rebates.--A rebate provided by a
State energy office under a HOMES rebate program may not be
combined with any other Federal grant or rebate, including a rebate
provided under a high-efficiency electric home rebate program (as
defined in section 50122(d)), for the same single upgrade.
(d) Definitions.--In this section:
(1) Disadvantaged community.--The term ``disadvantaged
community'' means a community that the Secretary determines, based
on appropriate data, indices, and screening tools, is economically,
socially, or environmentally disadvantaged.
(2) HOMES rebate program.--The term ``HOMES rebate program''
means a Home Owner Managing Energy Savings rebate program
established by a State energy office as part of an approved State
energy conservation plan under the State Energy Program.
(3) Low- or moderate-income household.--The term ``low- or
moderate-income household'' means an individual or family the total
annual income of which is less than 80 percent of the median income
of the area in which the individual or family resides, as reported
by the Department of Housing and Urban Development, including an
individual or family that has demonstrated eligibility for another
Federal program with income restrictions equal to or below 80
percent of area median income.
SEC. 50122. HIGH-EFFICIENCY ELECTRIC HOME REBATE PROGRAM.
(a) Appropriations.--
(1) Funds to state energy offices and indian tribes.--In
addition to amounts otherwise available, there is appropriated to
the Secretary for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, to carry out a program--
(A) to award grants to State energy offices to develop and
implement a high-efficiency electric home rebate program in
accordance with subsection (c), $4,275,000,000, to remain
available through September 30, 2031; and
(B) to award grants to Indian Tribes to develop and
implement a high-efficiency electric home rebate program in
accordance with subsection (c), $225,000,000, to remain
available through September 30, 2031.
(2) Allocation of funds.--
(A) State energy offices.--The Secretary shall reserve
funds made available under paragraph (1)(A) for each State
energy office--
(i) in accordance with the allocation formula for the
State Energy Program in effect on January 1, 2022; and
(ii) to be distributed to a State energy office if the
application of the State energy office under subsection (b)
is approved.
(B) Indian tribes.--The Secretary shall reserve funds made
available under paragraph (1)(B)--
(i) in a manner determined appropriate by the
Secretary; and
(ii) to be distributed to an Indian Tribe if the
application of the Indian Tribe under subsection (b) is
approved.
(C) Additional funds.--Not earlier than 2 years after the
date of enactment of this Act, any money reserved under--
(i) subparagraph (A) but not distributed under clause
(ii) of that subparagraph shall be redistributed to the
State energy offices operating a high-efficiency electric
home rebate program in proportion to the amount distributed
to those State energy offices under that clause; and
(ii) subparagraph (B) but not distributed under clause
(ii) of that subparagraph shall be redistributed to the
Indian Tribes operating a high-efficiency electric home
rebate program in proportion to the amount distributed to
those Indian Tribes under that clause.
(3) Administrative expenses.--Of the funds made available under
paragraph (1), the Secretary shall use not more than 3 percent
for--
(A) administrative purposes; and
(B) providing technical assistance relating to activities
carried out under this section.
(b) Application.--A State energy office or Indian Tribe seeking a
grant under the program shall submit to the Secretary an application
that includes a plan to implement a high-efficiency electric home
rebate program, including--
(1) a plan to verify the income eligibility of eligible
entities seeking a rebate for a qualified electrification project;
(2) a plan to allow rebates for qualified electrification
projects at the point of sale in a manner that ensures that the
income eligibility of an eligible entity seeking a rebate may be
verified at the point of sale;
(3) a plan to ensure that an eligible entity does not receive a
rebate for the same qualified electrification project through both
a high-efficiency electric home rebate program and any other
Federal grant or rebate program, pursuant to subsection (c)(8); and
(4) any additional information that the Secretary may require.
(c) High-efficiency Electric Home Rebate Program.--
(1) In general.--Under the program, the Secretary shall award
grants to State energy offices and Indian Tribes to establish a
high-efficiency electric home rebate program under which rebates
shall be provided to eligible entities for qualified
electrification projects.
(2) Guidelines.--The Secretary shall prescribe guidelines for
high-efficiency electric home rebate programs, including guidelines
for providing point of sale rebates in a manner consistent with the
income eligibility requirements under this section.
(3) Amount of rebate.--
(A) Appliance upgrades.--The amount of a rebate provided
under a high-efficiency electric home rebate program for the
purchase of an appliance under a qualified electrification
project shall be--
(i) not more than $1,750 for a heat pump water heater;
(ii) not more than $8,000 for a heat pump for space
heating or cooling; and
(iii) not more than $840 for--
(I) an electric stove, cooktop, range, or oven; or
(II) an electric heat pump clothes dryer.
(B) Nonappliance upgrades.--The amount of a rebate provided
under a high-efficiency electric home rebate program for the
purchase of a nonappliance upgrade under a qualified
electrification project shall be--
(i) not more than $4,000 for an electric load service
center upgrade;
(ii) not more than $1,600 for insulation, air sealing,
and ventilation; and
(iii) not more than $2,500 for electric wiring.
(C) Maximum rebate.--An eligible entity receiving multiple
rebates under this section may receive not more than a total of
$14,000 in rebates.
(4) Limitations.--A rebate provided using funding under this
section shall not exceed--
(A) in the case of an eligible entity described in
subsection (d)(1)(A)--
(i) 50 percent of the cost of the qualified
electrification project for a household the annual income
of which is not less than 80 percent and not greater than
150 percent of the area median income; and
(ii) 100 percent of the cost of the qualified
electrification project for a household the annual income
of which is less than 80 percent of the area median income;
(B) in the case of an eligible entity described in
subsection (d)(1)(B)--
(i) 50 percent of the cost of the qualified
electrification project for a multifamily building not less
than 50 percent of the residents of which are households
the annual income of which is not less than 80 percent and
not greater than 150 percent of the area median income; and
(ii) 100 percent of the cost of the qualified
electrification project for a multifamily building not less
than 50 percent of the residents of which are households
the annual income of which is less than 80 percent of the
area median income; or
(C) in the case of an eligible entity described in
subsection (d)(1)(C)--
(i) 50 percent of the cost of the qualified
electrification project for a household--
(I) on behalf of which the eligible entity is
working; and
(II) the annual income of which is not less than 80
percent and not greater than 150 percent of the area
median income; and
(ii) 100 percent of the cost of the qualified
electrification project for a household--
(I) on behalf of which the eligible entity is
working; and
(II) the annual income of which is less than 80
percent of the area median income.
(5) Amount for installation of upgrades.--
(A) In general.--In the case of an eligible entity
described in subsection (d)(1)(C) that receives a rebate under
the program and performs the installation of the applicable
qualified electrification project, a State energy office or
Indian Tribe shall provide to that eligible entity, in addition
to the rebate, an amount that--
(i) does not exceed $500; and
(ii) is commensurate with the scale of the upgrades
installed as part of the qualified electrification project,
as determined by the Secretary.
(B) Treatment.--An amount received under subparagraph (A)
by an eligible entity described in that subparagraph shall not
be subject to the requirement under paragraph (6).
(6) Requirement.--An eligible entity described in subparagraph
(C) of subsection (d)(1) shall discount the amount of a rebate
received for a qualified electrification project from any amount
charged by that eligible entity to the eligible entity described in
subparagraph (A) or (B) of that subsection on behalf of which the
qualified electrification project is carried out.
(7) Exemption.--Activities carried out by a State energy office
using a grant provided under the program shall not be subject to
the expenditure prohibitions and limitations described in section
420.18 of title 10, Code of Federal Regulations.
(8) Prohibition on combining rebates.--A rebate provided by a
State energy office or Indian Tribe under a high-efficiency
electric home rebate program may not be combined with any other
Federal grant or rebate, including a rebate provided under a HOMES
rebate program (as defined in section 50121(d)), for the same
qualified electrification project.
(9) Administrative costs.--A State energy office or Indian
Tribe that receives a grant under the program shall use not more
than 20 percent of the grant amount for planning, administration,
or technical assistance relating to a high-efficiency electric home
rebate program.
(d) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a low- or moderate-income household;
(B) an individual or entity that owns a multifamily
building not less than 50 percent of the residents of which are
low- or moderate-income households; and
(C) a governmental, commercial, or nonprofit entity, as
determined by the Secretary, carrying out a qualified
electrification project on behalf of an entity described in
subparagraph (A) or (B).
(2) High-efficiency electric home rebate program.--The term
``high-efficiency electric home rebate program'' means a rebate
program carried out by a State energy office or Indian Tribe
pursuant to subsection (c) using a grant received under the
program.
(3) Indian tribe.--The term ``Indian Tribe'' has the meaning
given the term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304).
(4) Low- or moderate-income household.--The term ``low- or
moderate-income household'' means an individual or family the total
annual income of which is less than 150 percent of the median
income of the area in which the individual or family resides, as
reported by the Department of Housing and Urban Development,
including an individual or family that has demonstrated eligibility
for another Federal program with income restrictions equal to or
below 150 percent of area median income.
(5) Program.--The term ``program'' means the program carried
out by the Secretary under subsection (a)(1).
(6) Qualified electrification project.--
(A) In general.--The term ``qualified electrification
project'' means a project that--
(i) includes the purchase and installation of--
(I) an electric heat pump water heater;
(II) an electric heat pump for space heating and
cooling;
(III) an electric stove, cooktop, range, or oven;
(IV) an electric heat pump clothes dryer;
(V) an electric load service center;
(VI) insulation;
(VII) air sealing and materials to improve
ventilation; or
(VIII) electric wiring;
(ii) with respect to any appliance described in clause
(i), the purchase of which is carried out--
(I) as part of new construction;
(II) to replace a nonelectric appliance; or
(III) as a first-time purchase with respect to that
appliance; and
(iii) is carried out at, or relating to, a single-
family home or multifamily building, as applicable and
defined by the Secretary.
(B) Exclusions.--The term ``qualified electrification
project'' does not include any project with respect to which
the appliance, system, equipment, infrastructure, component, or
other item described in subclauses (I) through (VIII) of
subparagraph (A)(i) is not certified under the Energy Star
program established by section 324A of the Energy Policy and
Conservation Act (42 U.S.C. 6294a), if applicable.
SEC. 50123. STATE-BASED HOME ENERGY EFFICIENCY CONTRACTOR TRAINING
GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $200,000,000, to
remain available through September 30, 2031, to carry out a program to
provide financial assistance to States to develop and implement a State
program described in section 362(d)(13) of the Energy Policy and
Conservation Act (42 U.S.C. 6322(d)(13)), which shall provide training
and education to contractors involved in the installation of home
energy efficiency and electrification improvements, including
improvements eligible for rebates under a HOMES rebate program (as
defined in section 50121(d)) or a high-efficiency electric home rebate
program (as defined in section 50122(d)), as part of an approved State
energy conservation plan under the State Energy Program.
(b) Use of Funds.--A State may use amounts received under
subsection (a)--
(1) to reduce the cost of training contractor employees;
(2) to provide testing and certification of contractors trained
and educated under a State program developed and implemented
pursuant to subsection (a); and
(3) to partner with nonprofit organizations to develop and
implement a State program pursuant to subsection (a).
(c) Administrative Expenses.--Of the amounts received by a State
under subsection (a), a State shall use not more than 10 percent for
administrative expenses associated with developing and implementing a
State program pursuant to that subsection.
PART 3--BUILDING EFFICIENCY AND RESILIENCE
SEC. 50131. ASSISTANCE FOR LATEST AND ZERO BUILDING ENERGY CODE
ADOPTION.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated--
(1) $330,000,000, to remain available through September 30,
2029, to carry out activities under part D of title III of the
Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326) in
accordance with subsection (b); and
(2) $670,000,000, to remain available through September 30,
2029, to carry out activities under part D of title III of the
Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326) in
accordance with subsection (c).
(b) Latest Building Energy Code.--The Secretary shall use funds
made available under subsection (a)(1) for grants to assist States, and
units of local government that have authority to adopt building codes--
(1) to adopt--
(A) a building energy code (or codes) for residential
buildings that meets or exceeds the 2021 International Energy
Conservation Code, or achieves equivalent or greater energy
savings;
(B) a building energy code (or codes) for commercial
buildings that meets or exceeds the ANSI/ASHRAE/IES Standard
90.1-2019, or achieves equivalent or greater energy savings; or
(C) any combination of building energy codes described in
subparagraph (A) or (B); and
(2) to implement a plan for the jurisdiction to achieve full
compliance with any building energy code adopted under paragraph
(1) in new and renovated residential or commercial buildings, as
applicable, which plan shall include active training and
enforcement programs and measurement of the rate of compliance each
year.
(c) Zero Energy Code.--The Secretary shall use funds made available
under subsection (a)(2) for grants to assist States, and units of local
government that have authority to adopt building codes--
(1) to adopt a building energy code (or codes) for residential
and commercial buildings that meets or exceeds the zero energy
provisions in the 2021 International Energy Conservation Code or an
equivalent stretch code; and
(2) to implement a plan for the jurisdiction to achieve full
compliance with any building energy code adopted under paragraph
(1) in new and renovated residential and commercial buildings,
which plan shall include active training and enforcement programs
and measurement of the rate of compliance each year.
(d) State Match.--The State cost share requirement under the item
relating to ``Department of Energy--Energy Conservation'' in title II
of the Department of the Interior and Related Agencies Appropriations
Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861), shall not apply to
assistance provided under this section.
(e) Administrative Costs.--Of the amounts made available under this
section, the Secretary shall reserve not more than 5 percent for
administrative costs necessary to carry out this section.
PART 4--DOE LOAN AND GRANT PROGRAMS
SEC. 50141. FUNDING FOR DEPARTMENT OF ENERGY LOAN PROGRAMS OFFICE.
(a) Commitment Authority.--In addition to commitment authority
otherwise available and previously provided, the Secretary may make
commitments to guarantee loans for eligible projects under section 1703
of the Energy Policy Act of 2005 (42 U.S.C. 16513), up to a total
principal amount of $40,000,000,000, to remain available through
September 30, 2026.
(b) Appropriation.--In addition to amounts otherwise available and
previously provided, there is appropriated to the Secretary for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$3,600,000,000, to remain available through September 30, 2026, for the
costs of guarantees made under section 1703 of the Energy Policy Act of
2005 (42 U.S.C. 16513), using the loan guarantee authority provided
under subsection (a) of this section.
(c) Administrative Expenses.--Of the amount made available under
subsection (b), the Secretary shall reserve not more than 3 percent for
administrative expenses to carry out title XVII of the Energy Policy
Act of 2005 and for carrying out section 1702(h)(3) of such Act (42
U.S.C. 16512(h)(3)).
(d) Limitations.--
(1) Certification.--None of the amounts made available under
this section for loan guarantees shall be available for any project
unless the President has certified in advance in writing that the
loan guarantee and the project comply with the provisions under
this section.
(2) Denial of double benefit.--Except as provided in paragraph
(3), none of the amounts made available under this section for loan
guarantees shall be available for commitments to guarantee loans
for any projects under which funds, personnel, or property
(tangible or intangible) of any Federal agency, instrumentality,
personnel, or affiliated entity are expected to be used (directly
or indirectly) through acquisitions, contracts, demonstrations,
exchanges, grants, incentives, leases, procurements, sales, other
transaction authority, or other arrangements to support the project
or to obtain goods or services from the project.
(3) Exception.--Paragraph (2) shall not preclude the use of the
loan guarantee authority provided under this section for
commitments to guarantee loans for--
(A) projects benefitting from otherwise allowable Federal
tax benefits;
(B) projects benefitting from being located on Federal land
pursuant to a lease or right-of-way agreement for which all
consideration for all uses is--
(i) paid exclusively in cash;
(ii) deposited in the Treasury as offsetting receipts;
and
(iii) equal to the fair market value;
(C) projects benefitting from the Federal insurance program
under section 170 of the Atomic Energy Act of 1954 (42 U.S.C.
2210); or
(D) electric generation projects using transmission
facilities owned or operated by a Federal Power Marketing
Administration or the Tennessee Valley Authority that have been
authorized, approved, and financed independent of the project
receiving the guarantee.
(e) Guarantee.--Section 1701(4)(A) of the Energy Policy Act of 2005
(42 U.S.C. 16511(4)(A)) is amended by inserting ``, except that a loan
guarantee may guarantee any debt obligation of a non-Federal borrower
to any Eligible Lender (as defined in section 609.2 of title 10, Code
of Federal Regulations)'' before the period at the end.
(f) Source of Payments.--Section 1702(b) of the Energy Policy Act
of 2005 (42 U.S.C. 16512(b)(2)) is amended by adding at the end the
following:
``(3) Source of payments.--The source of a payment received
from a borrower under subparagraph (A) or (B) of paragraph (2) may
not be a loan or other debt obligation that is made or guaranteed
by the Federal Government.''.
SEC. 50142. ADVANCED TECHNOLOGY VEHICLE MANUFACTURING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $3,000,000,000, to
remain available through September 30, 2028, for the costs of providing
direct loans under section 136(d) of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17013(d)): Provided, That funds
appropriated by this section may be used for the costs of providing
direct loans for reequipping, expanding, or establishing a
manufacturing facility in the United States to produce, or for
engineering integration performed in the United States of, advanced
technology vehicles described in subparagraph (C), (D), (E), or (F) of
section 136(a)(1) of such Act (42 U.S.C. 17013(a)(1)) only if such
advanced technology vehicles emit, under any possible operational mode
or condition, low or zero exhaust emissions of greenhouse gases.
(b) Administrative Costs.--The Secretary shall reserve not more
than $25,000,000 of amounts made available under subsection (a) for
administrative costs of providing loans as described in subsection (a).
(c) Elimination of Loan Program Cap.--Section 136(d)(1) of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17013(d)(1)) is
amended by striking ``a total of not more than $25,000,000,000 in''.
SEC. 50143. DOMESTIC MANUFACTURING CONVERSION GRANTS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $2,000,000,000, to
remain available through September 30, 2031, to provide grants for
domestic production of efficient hybrid, plug-in electric hybrid, plug-
in electric drive, and hydrogen fuel cell electric vehicles, in
accordance with section 712 of the Energy Policy Act of 2005 (42 U.S.C.
16062).
(b) Cost Share.--The Secretary shall require a recipient of a grant
provided under subsection (a) to provide not less than 50 percent of
the cost of the project carried out using the grant.
(c) Administrative Costs.--The Secretary shall reserve not more
than 3 percent of amounts made available under subsection (a) for
administrative costs of making grants described in such subsection (a)
pursuant to section 712 of the Energy Policy Act of 2005 (42 U.S.C.
16062).
SEC. 50144. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $5,000,000,000, to
remain available through September 30, 2026, to carry out activities
under section 1706 of the Energy Policy Act of 2005.
(b) Commitment Authority.--The Secretary may make, through
September 30, 2026, commitments to guarantee loans for projects under
section 1706 of the Energy Policy Act of 2005 the total principal
amount of which is not greater than $250,000,000,000, subject to the
limitations that apply to loan guarantees under section 50141(d).
(c) Energy Infrastructure Reinvestment Financing.--Title XVII of
the Energy Policy Act of 2005 is amended by inserting after section
1705 (42 U.S.C. 16516) the following:
``SEC. 1706. ENERGY INFRASTRUCTURE REINVESTMENT FINANCING.
``(a) In General.--Notwithstanding section 1703, the Secretary may
make guarantees, including refinancing, under this section only for
projects that--
``(1) retool, repower, repurpose, or replace energy
infrastructure that has ceased operations; or
``(2) enable operating energy infrastructure to avoid, reduce,
utilize, or sequester air pollutants or anthropogenic emissions of
greenhouse gases.
``(b) Inclusion.--A project under subsection (a) may include the
remediation of environmental damage associated with energy
infrastructure.
``(c) Requirement.--A project under subsection (a)(1) that involves
electricity generation through the use of fossil fuels shall be
required to have controls or technologies to avoid, reduce, utilize, or
sequester air pollutants and anthropogenic emissions of greenhouse
gases.
``(d) Application.--To apply for a guarantee under this section, an
applicant shall submit to the Secretary an application at such time, in
such manner, and containing such information as the Secretary may
require, including--
``(1) a detailed plan describing the proposed project;
``(2) an analysis of how the proposed project will engage with
and affect associated communities; and
``(3) in the case of an applicant that is an electric utility,
an assurance that the electric utility shall pass on any financial
benefit from the guarantee made under this section to the customers
of, or associated communities served by, the electric utility.
``(e) Term.--Notwithstanding section 1702(f), the term of an
obligation shall require full repayment over a period not to exceed 30
years.
``(f) Definition of Energy Infrastructure.--In this section, the
term `energy infrastructure' means a facility, and associated
equipment, used for--
``(1) the generation or transmission of electric energy; or
``(2) the production, processing, and delivery of fossil fuels,
fuels derived from petroleum, or petrochemical feedstocks.''.
(d) Conforming Amendment.--Section 1702(o)(3) of the Energy Policy
Act of 2005 (42 U.S.C. 16512(o)(3)) is amended by inserting ``and
projects described in section 1706(a)'' before the period at the end.
SEC. 50145. TRIBAL ENERGY LOAN GUARANTEE PROGRAM.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $75,000,000, to
remain available through September 30, 2028, to carry out section
2602(c) of the Energy Policy Act of 1992 (25 U.S.C. 3502(c)), subject
to the limitations that apply to loan guarantees under section
50141(d).
(b) Department of Energy Tribal Energy Loan Guarantee Program.--
Section 2602(c) of the Energy Policy Act of 1992 (25 U.S.C. 3502(c)) is
amended--
(1) in paragraph (1), by striking ``) for an amount equal to
not more than 90 percent of'' and inserting ``, except that a loan
guarantee may guarantee any debt obligation of a non-Federal
borrower to any Eligible Lender (as defined in section 609.2 of
title 10, Code of Federal Regulations)) for''; and
(2) in paragraph (4), by striking ``$2,000,000,000'' and
inserting ``$20,000,000,000''.
PART 5--ELECTRIC TRANSMISSION
SEC. 50151. TRANSMISSION FACILITY FINANCING.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $2,000,000,000, to
remain available through September 30, 2030, to carry out this section:
Provided, That the Secretary shall not enter into any loan agreement
pursuant to this section that could result in disbursements after
September 30, 2031.
(b) Use of Funds.--The Secretary shall use the amounts made
available by subsection (a) to carry out a program to pay the costs of
direct loans to non-Federal borrowers, subject to the limitations that
apply to loan guarantees under section 50141(d) and under such terms
and conditions as the Secretary determines to be appropriate, for the
construction or modification of electric transmission facilities
designated by the Secretary to be necessary in the national interest
under section 216(a) of the Federal Power Act (16 U.S.C. 824p(a)).
(c) Loans.--A direct loan provided under this section--
(1) shall have a term that does not exceed the lesser of--
(A) 90 percent of the projected useful life, in years, of
the eligible transmission facility; and
(B) 30 years;
(2) shall not exceed 80 percent of the project costs; and
(3) shall, on first issuance, be subject to the condition that
the direct loan is not subordinate to other financing.
(d) Interest Rates.--A direct loan provided under this section
shall bear interest at a rate determined by the Secretary, taking into
consideration market yields on outstanding marketable obligations of
the United States of comparable maturities as of the date on which the
direct loan is made.
(e) Definition of Direct Loan.--In this section, the term ``direct
loan'' has the meaning given the term in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a).
SEC. 50152. GRANTS TO FACILITATE THE SITING OF INTERSTATE ELECTRICITY
TRANSMISSION LINES.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $760,000,000, to
remain available through September 30, 2029, for making grants in
accordance with this section and for administrative expenses associated
with carrying out this section.
(b) Use of Funds.--
(1) In general.--The Secretary may make a grant under this
section to a siting authority for, with respect to a covered
transmission project, any of the following activities:
(A) Studies and analyses of the impacts of the covered
transmission project.
(B) Examination of up to 3 alternate siting corridors
within which the covered transmission project feasibly could be
sited.
(C) Participation by the siting authority in regulatory
proceedings or negotiations in another jurisdiction, or under
the auspices of a Transmission Organization (as defined in
section 3 of the Federal Power Act (16 U.S.C. 796)) that is
also considering the siting or permitting of the covered
transmission project.
(D) Participation by the siting authority in regulatory
proceedings at the Federal Energy Regulatory Commission or a
State regulatory commission for determining applicable rates
and cost allocation for the covered transmission project.
(E) Other measures and actions that may improve the chances
of, and shorten the time required for, approval by the siting
authority of the application relating to the siting or
permitting of the covered transmission project, as the
Secretary determines appropriate.
(2) Economic development.--The Secretary may make a grant under
this section to a siting authority, or other State, local, or
Tribal governmental entity, for economic development activities for
communities that may be affected by the construction and operation
of a covered transmission project, provided that the Secretary
shall not enter into any grant agreement pursuant to this section
that could result in any outlays after September 30, 2031.
(c) Conditions.--
(1) Final decision on application.--In order to receive a grant
for an activity described in subsection (b)(1), the Secretary shall
require a siting authority to agree, in writing, to reach a final
decision on the application relating to the siting or permitting of
the applicable covered transmission project not later than 2 years
after the date on which such grant is provided, unless the
Secretary authorizes an extension for good cause.
(2) Federal share.--The Federal share of the cost of an
activity described in subparagraph (C) or (D) of subsection (b)(1)
shall not exceed 50 percent.
(3) Economic development.--The Secretary may only disburse
grant funds for economic development activities under subsection
(b)(2)--
(A) to a siting authority upon approval by the siting
authority of the applicable covered transmission project; and
(B) to any other State, local, or Tribal governmental
entity upon commencement of construction of the applicable
covered transmission project in the area under the jurisdiction
of the entity.
(d) Returning Funds.--If a siting authority that receives a grant
for an activity described in subsection (b)(1) fails to use all grant
funds within 2 years of receipt, the siting authority shall return to
the Secretary any such unused funds.
(e) Definitions.--In this section:
(1) Covered transmission project.--The term ``covered
transmission project'' means a high-voltage interstate or offshore
electricity transmission line--
(A) that is proposed to be constructed and to operate--
(i) at a minimum of 275 kilovolts of either
alternating-current or direct-current electric energy by an
entity; or
(ii) offshore and at a minimum of 200 kilovolts of
either alternating-current or direct-current electric
energy by an entity; and
(B) for which such entity has applied, or informed a siting
authority of such entity's intent to apply, for regulatory
approval.
(2) Siting authority.--The term ``siting authority'' means a
State, local, or Tribal governmental entity with authority to make
a final determination regarding the siting, permitting, or
regulatory status of a covered transmission project that is
proposed to be located in an area under the jurisdiction of the
entity.
SEC. 50153. INTERREGIONAL AND OFFSHORE WIND ELECTRICITY TRANSMISSION
PLANNING, MODELING, AND ANALYSIS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $100,000,000, to
remain available through September 30, 2031, to carry out this section.
(b) Use of Funds.--The Secretary shall use amounts made available
under subsection (a)--
(1) to pay expenses associated with convening relevant
stakeholders to address the development of interregional
electricity transmission and transmission of electricity that is
generated by offshore wind; and
(2) to conduct planning, modeling, and analysis regarding
interregional electricity transmission and transmission of
electricity that is generated by offshore wind, taking into account
the local, regional, and national economic, reliability,
resilience, security, public policy, and environmental benefits of
interregional electricity transmission and transmission of
electricity that is generated by offshore wind, including planning,
modeling, and analysis, as the Secretary determines appropriate,
pertaining to--
(A) clean energy integration into the electric grid,
including the identification of renewable energy zones;
(B) the effects of changes in weather due to climate change
on the reliability and resilience of the electric grid;
(C) cost allocation methodologies that facilitate the
expansion of the bulk power system;
(D) the benefits of coordination between generator
interconnection processes and transmission planning processes;
(E) the effect of increased electrification on the electric
grid;
(F) power flow modeling;
(G) the benefits of increased interconnections or interties
between or among the Western Interconnection, the Eastern
Interconnection, the Electric Reliability Council of Texas, and
other interconnections, as applicable;
(H) the cooptimization of transmission and generation,
including variable energy resources, energy storage, and
demand-side management;
(I) the opportunities for use of nontransmission
alternatives, energy storage, and grid-enhancing technologies;
(J) economic development opportunities for communities
arising from development of interregional electricity
transmission and transmission of electricity that is generated
by offshore wind;
(K) evaluation of existing rights-of-way and the need for
additional transmission corridors; and
(L) a planned national transmission grid, which would
include a networked transmission system to optimize the
existing grid for interconnection of offshore wind farms.
PART 6--INDUSTRIAL
SEC. 50161. ADVANCED INDUSTRIAL FACILITIES DEPLOYMENT PROGRAM.
(a) Office of Clean Energy Demonstrations.--In addition to amounts
otherwise available, there is appropriated to the Secretary, acting
through the Office of Clean Energy Demonstrations, for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$5,812,000,000, to remain available through September 30, 2026, to
carry out this section.
(b) Financial Assistance.--The Secretary shall use funds
appropriated by subsection (a) to provide financial assistance, on a
competitive basis, to eligible entities to carry out projects for--
(1) the purchase and installation, or implementation, of
advanced industrial technology at an eligible facility;
(2) retrofits, upgrades to, or operational improvements at an
eligible facility to install or implement advanced industrial
technology; or
(3) engineering studies and other work needed to prepare an
eligible facility for activities described in paragraph (1) or (2).
(c) Application.--To be eligible to receive financial assistance
under subsection (b), an eligible entity shall submit to the Secretary
an application at such time, in such manner, and containing such
information as the Secretary may require, including the expected
greenhouse gas emissions reductions to be achieved by carrying out the
project.
(d) Priority.--In providing financial assistance under subsection
(b), the Secretary shall give priority consideration to projects on the
basis of, as determined by the Secretary--
(1) the expected greenhouse gas emissions reductions to be
achieved by carrying out the project;
(2) the extent to which the project would provide the greatest
benefit for the greatest number of people within the area in which
the eligible facility is located; and
(3) whether the eligible entity participates or would
participate in a partnership with purchasers of the output of the
eligible facility.
(e) Cost Share.--The Secretary shall require an eligible entity to
provide not less than 50 percent of the cost of a project carried out
pursuant to this section.
(f) Administrative Costs.--The Secretary shall reserve not more
than $300,000,000 of amounts made available under subsection (a) for
administrative costs of carrying out this section.
(g) Definitions.--In this section:
(1) Advanced industrial technology.--The term ``advanced
industrial technology'' means a technology directly involved in an
industrial process, as described in any of paragraphs (1) through
(6) of section 454(c) of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17113(c)), and designed to accelerate greenhouse
gas emissions reduction progress to net-zero at an eligible
facility, as determined by the Secretary.
(2) Eligible entity.--The term ``eligible entity'' means the
owner or operator of an eligible facility.
(3) Eligible facility.--The term ``eligible facility'' means a
domestic, non-Federal, nonpower industrial or manufacturing
facility engaged in energy-intensive industrial processes,
including production processes for iron, steel, steel mill
products, aluminum, cement, concrete, glass, pulp, paper,
industrial ceramics, chemicals, and other energy intensive
industrial processes, as determined by the Secretary.
(4) Financial assistance.--The term ``financial assistance''
means a grant, rebate, direct loan, or cooperative agreement.
PART 7--OTHER ENERGY MATTERS
SEC. 50171. DEPARTMENT OF ENERGY OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $20,000,000, to remain available through
September 30, 2031, for oversight by the Department of Energy Office of
Inspector General of the Department of Energy activities for which
funding is appropriated in this subtitle.
SEC. 50172. NATIONAL LABORATORY INFRASTRUCTURE.
(a) Office of Science.--In addition to amounts otherwise available,
there is appropriated to the Secretary, acting through the Director of
the Office of Science, for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, to remain available through
September 30, 2027--
(1) $133,240,000 to carry out activities for science laboratory
infrastructure projects;
(2) $303,656,000 to carry out activities for high energy
physics construction and major items of equipment projects;
(3) $280,000,000 to carry out activities for fusion energy
science construction and major items of equipment projects;
(4) $217,000,000 to carry out activities for nuclear physics
construction and major items of equipment projects;
(5) $163,791,000 to carry out activities for advanced
scientific computing research facilities;
(6) $294,500,000 to carry out activities for basic energy
sciences projects; and
(7) $157,813,000 to carry out activities for isotope research
and development facilities.
(b) Office of Fossil Energy and Carbon Management.--In addition to
amounts otherwise available, there is appropriated to the Secretary for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $150,000,000, to remain available through September 30,
2027, to carry out activities for infrastructure and general plant
projects carried out by the Office of Fossil Energy and Carbon
Management.
(c) Office of Nuclear Energy.--In addition to amounts otherwise
available, there is appropriated to the Secretary for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$150,000,000, to remain available through September 30, 2027, to carry
out activities for infrastructure and general plant projects carried
out by the Office of Nuclear Energy.
(d) Office of Energy Efficiency and Renewable Energy.--In addition
to amounts otherwise available, there is appropriated to the Secretary
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $150,000,000, to remain available through September 30,
2027, to carry out activities for infrastructure and general plant
projects carried out by the Office of Energy Efficiency and Renewable
Energy.
SEC. 50173. AVAILABILITY OF HIGH-ASSAY LOW-ENRICHED URANIUM.
(a) Appropriations.--In addition to amounts otherwise available,
there is appropriated to the Secretary of for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available through September 30, 2026--
(1) $100,000,000 to carry out the program elements described in
subparagraphs (A) through (C) of section 2001(a)(2) of the Energy
Act of 2020 (42 U.S.C. 16281(a)(2));
(2) $500,000,000 to carry out the program elements described in
subparagraphs (D) through (H) of that section; and
(3) $100,000,000 to carry out activities to support the
availability of high-assay low-enriched uranium for civilian
domestic research, development, demonstration, and commercial use
under section 2001 of the Energy Act of 2020 (42 U.S.C. 16281).
(b) Competitive Procedures.--To the maximum extent practicable, the
Department of Energy shall, in a manner consistent with section 989 of
the Energy Policy Act of 2005 (42 U.S.C. 16353), use a competitive,
merit-based review process in carrying out research, development,
demonstration, and deployment activities under section 2001 of the
Energy Act of 2020 (42 U.S.C. 16281).
(c) Administrative Expenses.--The Secretary may use not more than 3
percent of the amounts appropriated by subsection (a) for
administrative purposes.
Subtitle B--Natural Resources
PART 1--GENERAL PROVISIONS
SEC. 50211. DEFINITIONS.
In this subtitle:
(1) Secretary.--The term ``Secretary'' means the Secretary of
the Interior.
(2) United states insular areas.--The term ``United States
Insular Areas'' means American Samoa, the Commonwealth of the
Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico,
and the United States Virgin Islands.
PART 2--PUBLIC LANDS
SEC. 50221. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND
RESILIENCE.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $250,000,000, to remain available through
September 30, 2031, to carry out projects for the conservation,
protection, and resiliency of lands and resources administered by the
National Park Service and Bureau of Land Management. None of the funds
provided under this section shall be subject to cost-share or matching
requirements.
SEC. 50222. NATIONAL PARKS AND PUBLIC LANDS CONSERVATION AND ECOSYSTEM
RESTORATION.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $250,000,000, to remain available through
September 30, 2031, to carry out conservation, ecosystem and habitat
restoration projects on lands administered by the National Park Service
and Bureau of Land Management. None of the funds provided under this
section shall be subject to cost-share or matching requirements.
SEC. 50223. NATIONAL PARK SERVICE EMPLOYEES.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $500,000,000, to remain available through
September 30, 2030, to hire employees to serve in units of the National
Park System or national historic or national scenic trails administered
by the National Park Service.
SEC. 50224. NATIONAL PARK SYSTEM DEFERRED MAINTENANCE.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $200,000,000, to remain available through
September 30, 2026, to carry out priority deferred maintenance
projects, through direct expenditures or transfers, within the
boundaries of the National Park System.
PART 3--DROUGHT RESPONSE AND PREPAREDNESS
SEC. 50231. BUREAU OF RECLAMATION DOMESTIC WATER SUPPLY PROJECTS.
In addition to amounts otherwise available, there is appropriated
to the Secretary, acting through the Commissioner of Reclamation, for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $550,000,000, to remain available through September 30,
2031, for grants, contracts, or financial assistance agreements for
disadvantaged communities (identified according to criteria adopted by
the Commissioner of Reclamation) in a manner as determined by the
Commissioner of Reclamation for up to 100 percent of the cost of the
planning, design, or construction of water projects the primary purpose
of which is to provide domestic water supplies to communities or
households that do not have reliable access to domestic water supplies
in a State or territory described in the first section of the Act of
June 17, 1902 (43 U.S.C. 391; 32 Stat. 388, chapter 1093).
SEC. 50232. CANAL IMPROVEMENT PROJECTS.
In addition to amounts otherwise available, there is appropriated
to the Secretary, acting through the Commissioner of Reclamation, for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $25,000,000, to remain available through September 30,
2031, for the design, study, and implementation of projects (including
pilot and demonstration projects) to cover water conveyance facilities
with solar panels to generate renewable energy in a manner as
determined by the Secretary or for other solar projects associated with
Bureau of Reclamation projects that increase water efficiency and
assist in implementation of clean energy goals.
SEC. 50233. DROUGHT MITIGATION IN THE RECLAMATION STATES.
(a) Definition of Reclamation State.--In this section, the term
``Reclamation State'' means a State or territory described in the first
section of the Act of June 17, 1902 (32 Stat. 388, chapter 1093; 43
U.S.C. 391).
(b) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Secretary (acting through the Commissioner
of Reclamation), for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $4,000,000,000, to remain available through
September 30, 2026, for grants, contracts, or financial assistance
agreements, in accordance with the reclamation laws, to or with public
entities and Indian Tribes, that provide for the conduct of the
following activities to mitigate the impacts of drought in the
Reclamation States, with priority given to the Colorado River Basin and
other basins experiencing comparable levels of long-term drought, to be
implemented in compliance with applicable environmental law:
(1) Compensation for a temporary or multiyear voluntary
reduction in diversion of water or consumptive water use.
(2) Voluntary system conservation projects that achieve
verifiable reductions in use of or demand for water supplies or
provide environmental benefits in the Lower Basin or Upper Basin of
the Colorado River.
(3) Ecosystem and habitat restoration projects to address
issues directly caused by drought in a river basin or inland water
body.
(c) Report.--Not later than 1 year after the date of enactment of
this Act, and each year thereafter, the Secretary shall submit to
Congress a report that describes any expenditures under this section.
PART 4--INSULAR AFFAIRS
SEC. 50241. OFFICE OF INSULAR AFFAIRS CLIMATE CHANGE TECHNICAL
ASSISTANCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Secretary, acting through the Office of Insular
Affairs, for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $15,000,000, to remain available through
September 30, 2026, to provide technical assistance for climate change
planning, mitigation, adaptation, and resilience to United States
Insular Areas.
(b) Administrative Expenses.--In addition to amounts otherwise
available, there is appropriated to the Secretary, acting through the
Office of Insular Affairs, for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $900,000, to remain available
through September 30, 2026, for necessary administrative expenses
associated with carrying out this section.
PART 5--OFFSHORE WIND
SEC. 50251. LEASING ON THE OUTER CONTINENTAL SHELF.
(a) Leasing Authorized.--The Secretary may grant leases, easements,
and rights-of-way pursuant to section 8(p)(1)(C) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337(p)(1)(C)) in an area
withdrawn by--
(1) the Presidential memorandum entitled ``Memorandum on the
Withdrawal of Certain Areas of the United States Outer Continental
Shelf from Leasing Disposition'' and dated September 8, 2020; or
(2) the Presidential memorandum entitled ``Presidential
Determination on the Withdrawal of Certain Areas of the United
States Outer Continental Shelf from Leasing Disposition'' and dated
September 25, 2020.
(b) Offshore Wind for the Territories.--
(1) Application of outer continental shelf lands act with
respect to territories of the united states.--
(A) In general.--Section 2 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1331) is amended--
(i) in subsection (a)--
(I) by striking ``means all'' and inserting the
following: ``means--
``(1) all''; and
(II) in paragraph (1) (as so designated), by
striking ``control;'' and inserting the following:
``control or within the exclusive economic zone of the
United States and adjacent to any territory of the
United States; and''; and
(III) by adding at the end following:
``(2) does not include any area conveyed by Congress to a
territorial government for administration;'';
(ii) in subsection (p), by striking ``and'' after the
semicolon at the end;
(iii) in subsection (q), by striking the period at the
end and inserting ``; and''; and
(iv) by adding at the end the following:
``(r) The term `State' means--
``(1) each of the several States;
``(2) the Commonwealth of Puerto Rico;
``(3) Guam;
``(4) American Samoa;
``(5) the United States Virgin Islands; and
``(6) the Commonwealth of the Northern Mariana Islands.''.
(B) Exclusions.--Section 18 of the Outer Continental Shelf
Lands Act (43 U.S.C. 1344) is amended by adding at the end the
following:
``(i) Application.--This section shall not apply to the
scheduling of any lease sale in an area of the outer
Continental Shelf that is adjacent to the Commonwealth of
Puerto Rico, Guam, American Samoa, the United States Virgin
Islands, or the Commonwealth of the Northern Mariana
Islands.''.
(2) Wind lease sales for areas of the outer continental
shelf.--The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) is amended by adding at the end the following:
``SEC. 33. WIND LEASE SALES FOR AREAS OF THE OUTER CONTINENTAL SHELF
OFFSHORE OF TERRITORIES OF THE UNITED STATES.
``(a) Wind Lease Sales Off Coasts of Territories of the United
States.--
``(1) Call for information and nominations.--
``(A) In general.--The Secretary shall issue calls for
information and nominations for proposed wind lease sales for
areas of the outer Continental Shelf described in paragraph (2)
that are determined to be feasible.
``(B) Initial call.--Not later than September 30, 2025, the
Secretary shall issue an initial call for information and
nominations under this paragraph.
``(2) Conditional wind lease sales.--The Secretary may conduct
wind lease sales in each area within the exclusive economic zone of
the United States adjacent to the Commonwealth of Puerto Rico,
Guam, American Samoa, the United States Virgin Islands, or the
Commonwealth of the Northern Mariana Islands that meets each of the
following criteria:
``(A) The Secretary has concluded that a wind lease sale in
the area is feasible.
``(B) The Secretary has determined that there is sufficient
interest in leasing the area.
``(C) The Secretary has consulted with the Governor of the
territory regarding the suitability of the area for wind energy
development.''.
PART 6--FOSSIL FUEL RESOURCES
SEC. 50261. OFFSHORE OIL AND GAS ROYALTY RATE.
Section 8(a)(1) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(1)) is amended--
(1) in each of subparagraphs (A) and (C), by striking ``not
less than 12\1/2\ per centum'' each place it appears and inserting
``not less than 16\2/3\ percent, but not more than 18\3/4\ percent,
during the 10-year period beginning on the date of enactment of the
Act titled `An Act to provide for reconciliation pursuant to title
II of S. Con. Res. 14', and not less than 16\2/3\ percent
thereafter,'';
(2) in subparagraph (F), by striking ``no less than 12\1/2\ per
centum'' and inserting ``not less than 16\2/3\ percent, but not
more than 18\3/4\ percent, during the 10-year period beginning on
the date of enactment of the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14', and not
less than 16\2/3\ percent thereafter,''; and
(3) in subparagraph (H), by striking ``no less than 12 and \1/
2\ per centum'' and inserting ``not less than 16\2/3\ percent, but
not more than 18\3/4\ percent, during the 10-year period beginning
on the date of enactment of the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14', and not
less than 16\2/3\ percent thereafter,''.
SEC. 50262. MINERAL LEASING ACT MODERNIZATION.
(a) Onshore Oil and Gas Royalty Rates.--
(1) Lease of oil and gas land.--Section 17 of the Mineral
Leasing Act (30 U.S.C. 226) is amended--
(A) in subsection (b)(1)(A), in the fifth sentence--
(i) by striking ``12.5'' and inserting ``16\2/3\''; and
(ii) by inserting ``or, in the case of a lease issued
during the 10-year period beginning on the date of
enactment of the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14',
16\2/3\ percent in amount or value of the production
removed or sold from the lease'' before the period at the
end; and
(B) by striking ``12\1/2\ per centum'' each place it
appears and inserting ``16\2/3\ percent''.
(2) Conditions for reinstatement.--Section 31(e)(3) of the
Mineral Leasing Act (30 U.S.C. 188(e)(3)) is amended by striking
``16\2/3\'' each place it appears and inserting ``20''.
(b) Oil and Gas Minimum Bid.--Section 17(b) of the Mineral Leasing
Act (30 U.S.C. 226(b)) is amended--
(1) in paragraph (1)(B), in the first sentence, by striking
``$2 per acre for a period of 2 years from the date of enactment of
the Federal Onshore Oil and Gas Leasing Reform Act of 1987.'' and
inserting ``$10 per acre during the 10-year period beginning on the
date of enactment of the Act titled `An Act to provide for
reconciliation pursuant to title II of S. Con. Res. 14'.''; and
(2) in paragraph (2)(C), by striking ``$2 per acre'' and
inserting ``$10 per acre''.
(c) Fossil Fuel Rental Rates.--
(1) Annual rentals.--Section 17(d) of the Mineral Leasing Act
(30 U.S.C. 226(d)) is amended, in the first sentence, by striking
``$1.50 per acre'' and all that follows through the period at the
end and inserting ``$3 per acre per year during the 2-year period
beginning on the date the lease begins for new leases, and after
the end of that 2-year period, $5 per acre per year for the
following 6-year period, and not less than $15 per acre per year
thereafter, or, in the case of a lease issued during the 10-year
period beginning on the date of enactment of the Act titled `An Act
to provide for reconciliation pursuant to title II of S. Con. Res.
14', $3 per acre per year during the 2-year period beginning on the
date the lease begins, and after the end of that 2-year period, $5
per acre per year for the following 6-year period, and $15 per acre
per year thereafter.''.
(2) Rentals in reinstated leases.--Section 31(e)(2) of the
Mineral Leasing Act (30 U.S.C. 188(e)(2)) is amended by striking
``$10'' and inserting ``$20''.
(d) Expression of Interest Fee.--Section 17 of the Mineral Leasing
Act (30 U.S.C. 226) is amended by adding at the end the following:
``(q) Fee for Expression of Interest.--
``(1) In general.--The Secretary shall assess a nonrefundable
fee against any person that, in accordance with procedures
established by the Secretary to carry out this subsection, submits
an expression of interest in leasing land available for disposition
under this section for exploration for, and development of, oil or
gas.
``(2) Amount of fee.--
``(A) In general.--Subject to subparagraph (B), the fee
assessed under paragraph (1) shall be $5 per acre of the area
covered by the applicable expression of interest.
``(B) Adjustment of fee.--The Secretary shall, by
regulation, not less frequently than every 4 years, adjust the
amount of the fee under subparagraph (A) to reflect the change
in inflation.''.
(e) Elimination of Noncompetitive Leasing.--
(1) In general.--Section 17 of the Mineral Leasing Act (30
U.S.C. 226) is amended--
(A) in subsection (b)--
(i) in paragraph (1)(A)--
(I) in the first sentence, by striking ``paragraphs
(2) and (3) of this subsection'' and inserting
``paragraph (2)''; and
(II) by striking the last sentence; and
(ii) by striking paragraph (3);
(B) by striking subsection (c) and inserting the following:
``(c) Additional Rounds of Competitive Bidding.--Land made
available for leasing under subsection (b)(1) for which no bid is
accepted or received, or the land for which a lease terminates,
expires, is cancelled, or is relinquished, may be made available by the
Secretary of the Interior for a new round of competitive bidding under
that subsection.''; and
(C) by striking subsection (e) and inserting the following:
``(e) Term of Lease.--
``(1) In general.--Any lease issued under this section,
including a lease for tar sand areas, shall be for a primary term
of 10 years.
``(2) Continuation of lease.--A lease described in paragraph
(1) shall continue after the primary term of the lease for any
period during which oil or gas is produced in paying quantities.
``(3) Additional extensions.--Any lease issued under this
section for land on which, or for which under an approved
cooperative or unit plan of development or operation, actual
drilling operations were commenced and diligently prosecuted prior
to the end of the primary term of the lease shall be extended for 2
years and for any period thereafter during which oil or gas is
produced in paying quantities.''.
(2) Conforming amendments.--Section 31 of the Mineral Leasing
Act (30 U.S.C. 188) is amended--
(A) in subsection (d)(1), in the first sentence, by
striking ``or section 17(c) of this Act'';
(B) in subsection (e)--
(i) in paragraph (2)--
(I) by striking ``either''; and
(II) by striking ``or the inclusion'' and all that
follows through ``, all''; and
(ii) in paragraph (3)--
(I) in subparagraph (A), by adding ``and'' after
the semicolon;
(II) by striking subparagraph (B); and
(III) by striking ``(3)(A) payment'' and inserting
the following:
``(3) payment'';
(C) in subsection (g)--
(i) in paragraph (1), by striking ``as a competitive''
and all that follows through ``of this Act'' and inserting
``in the same manner as the original lease issued pursuant
to section 17'';
(ii) by striking paragraph (2);
(iii) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively; and
(iv) in paragraph (2) (as so redesignated), by striking
``applicable to leases issued under subsection 17(c) of
this Act (30 U.S.C. 226(c)) except,'' and inserting
``except'';
(D) in subsection (h), by striking ``subsections (d) and
(f) of this section'' and inserting ``subsection (d)'';
(E) in subsection (i), by striking ``(i)(1) In acting'' and
all that follows through ``of this section'' in paragraph (2)
and inserting the following:
``(i) Royalty reduction in reinstated leases.--In
acting on a petition for reinstatement pursuant to
subsection (d)'';
(F) by striking subsection (f); and
(G) by redesignating subsections (g) through (j) as
subsections (f) through (i), respectively.
SEC. 50263. ROYALTIES ON ALL EXTRACTED METHANE.
(a) In General.--For all leases issued after the date of enactment
of this Act, except as provided in subsection (b), royalties paid for
gas produced from Federal land and on the outer Continental Shelf shall
be assessed on all gas produced, including all gas that is consumed or
lost by venting, flaring, or negligent releases through any equipment
during upstream operations.
(b) Exception.--Subsection (a) shall not apply with respect to--
(1) gas vented or flared for not longer than 48 hours in an
emergency situation that poses a danger to human health, safety, or
the environment;
(2) gas used or consumed within the area of the lease, unit, or
communitized area for the benefit of the lease, unit, or
communitized area; or
(3) gas that is unavoidably lost.
SEC. 50264. LEASE SALES UNDER THE 2017-2022 OUTER CONTINENTAL SHELF
LEASING PROGRAM.
(a) Definitions.--In this section:
(1) Lease sale 257.--The term ``Lease Sale 257'' means the
lease sale numbered 257 that was approved in the Record of Decision
described in the notice of availability of a record of decision
issued on August 31, 2021, entitled ``Gulf of Mexico, Outer
Continental Shelf (OCS), Oil and Gas Lease Sale 257'' (86 Fed. Reg.
50160 (September 7, 2021)), and is the subject of the final notice
of sale entitled ``Gulf of Mexico Outer Continental Shelf Oil and
Gas Lease Sale 257'' (86 Fed. Reg. 54728 (October 4, 2021)).
(2) Lease sale 258.--The term ``Lease Sale 258'' means the
lease sale numbered 258 described in the 2017-2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary in
the Record of Decision issued on January 17, 2017, described in the
notice of availability entitled ``Record of Decision for the 2017-
2022 Outer Continental Shelf Oil and Gas Leasing Program Final
Programmatic Environmental Impact Statement; MMAA104000'' (82 Fed.
Reg. 6643 (January 19, 2017)).
(3) Lease sale 259.--The term ``Lease Sale 259'' means the
lease sale numbered 259 described in the 2017-2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary in
the Record of Decision issued on January 17, 2017, described in the
notice of availability entitled ``Record of Decision for the 2017-
2022 Outer Continental Shelf Oil and Gas Leasing Program Final
Programmatic Environmental Impact Statement; MMAA104000'' (82 Fed.
Reg. 6643 (January 19, 2017)).
(4) Lease sale 261.--The term ``Lease Sale 261'' means the
lease sale numbered 261 described in the 2017-2022 Outer
Continental Shelf Oil and Gas Leasing Proposed Final Program
published on November 18, 2016, and approved by the Secretary in
the Record of Decision issued on January 17, 2017, described in the
notice of availability entitled ``Record of Decision for the 2017-
2022 Outer Continental Shelf Oil and Gas Leasing Program Final
Programmatic Environmental Impact Statement; MMAA104000'' (82 Fed.
Reg. 6643 (January 19, 2017)).
(b) Lease Sale 257 Reinstatement.--
(1) Acceptance of bids.--Not later 30 days after the date of
enactment of this Act, the Secretary shall, without modification or
delay--
(A) accept the highest valid bid for each tract or bidding
unit of Lease Sale 257 for which a valid bid was received on
November 17, 2021; and
(B) provide the appropriate lease form to the winning
bidder to execute and return.
(2) Lease issuance.--On receipt of an executed lease form under
paragraph (1)(B) and payment of the rental for the first year, the
balance of the bonus bid (unless deferred), and any required bond
or security from the high bidder, the Secretary shall promptly
issue to the high bidder a fully executed lease, in accordance
with--
(A) the regulations in effect on the date of Lease Sale
257; and
(B) the terms and conditions of the final notice of sale
entitled ``Gulf of Mexico Outer Continental Shelf Oil and Gas
Lease Sale 257'' (86 Fed. Reg. 54728 (October 4, 2021)).
(c) Requirement for Lease Sale 258.--Notwithstanding the expiration
of the 2017-2022 leasing program, not later than December 31, 2022, the
Secretary shall conduct Lease Sale 258 in accordance with the Record of
Decision approved by the Secretary on January 17, 2017, described in
the notice of availability entitled ``Record of Decision for the 2017-
2022 Outer Continental Shelf Oil and Gas Leasing Program Final
Programmatic Environmental Impact Statement; MMAA104000'' issued on
January 17, 2017 (82 Fed. Reg. 6643 (January 19, 2017)).
(d) Requirement for Lease Sale 259.--Notwithstanding the expiration
of the 2017-2022 leasing program, not later than March 31, 2023, the
Secretary shall conduct Lease Sale 259 in accordance with the Record of
Decision approved by the Secretary on January 17, 2017, described in
the notice of availability entitled ``Record of Decision for the 2017-
2022 Outer Continental Shelf Oil and Gas Leasing Program Final
Programmatic Environmental Impact Statement; MMAA104000'' issued on
January 17, 2017 (82 Fed. Reg. 6643 (January 19, 2017)).
(e) Requirement for Lease Sale 261.--Notwithstanding the expiration
of the 2017-2022 leasing program, not later than September 30, 2023,
the Secretary shall conduct Lease Sale 261 in accordance with the
Record of Decision approved by the Secretary on January 17, 2017,
described in the notice of availability entitled ``Record of Decision
for the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Program
Final Programmatic Environmental Impact Statement; MMAA104000'' issued
on January 17, 2017 (82 Fed. Reg. 6643 (January 19, 2017)).
SEC. 50265. ENSURING ENERGY SECURITY.
(a) Definitions.--In this section:
(1) Federal land.--The term ``Federal land'' means public lands
(as defined in section 103 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1702)).
(2) Offshore lease sale.--The term ``offshore lease sale''
means an oil and gas lease sale--
(A) that is held by the Secretary in accordance with the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.); and
(B) that, if any acceptable bids have been received for any
tract offered in the lease sale, results in the issuance of a
lease.
(3) Onshore lease sale.--The term ``onshore lease sale'' means
a quarterly oil and gas lease sale--
(A) that is held by the Secretary in accordance with
section 17 of the Mineral Leasing Act (30 U.S.C. 226); and
(B) that, if any acceptable bids have been received for any
parcel offered in the lease sale, results in the issuance of a
lease.
(b) Limitation on Issuance of Certain Leases or Rights-of-way.--
During the 10-year period beginning on the date of enactment of this
Act--
(1) the Secretary may not issue a right-of-way for wind or
solar energy development on Federal land unless--
(A) an onshore lease sale has been held during the 120-day
period ending on the date of the issuance of the right-of-way
for wind or solar energy development; and
(B) the sum total of acres offered for lease in onshore
lease sales during the 1-year period ending on the date of the
issuance of the right-of-way for wind or solar energy
development is not less than the lesser of--
(i) 2,000,000 acres; and
(ii) 50 percent of the acreage for which expressions of
interest have been submitted for lease sales during that
period; and
(2) the Secretary may not issue a lease for offshore wind
development under section 8(p)(1)(C) of the Outer Continental Shelf
Lands Act (43 U.S.C. 1337(p)(1)(C)) unless--
(A) an offshore lease sale has been held during the 1-year
period ending on the date of the issuance of the lease for
offshore wind development; and
(B) the sum total of acres offered for lease in offshore
lease sales during the 1-year period ending on the date of the
issuance of the lease for offshore wind development is not less
than 60,000,000 acres.
(c) Savings.--Except as expressly provided in paragraphs (1) and
(2) of subsection (b), nothing in this section supersedes, amends, or
modifies existing law.
PART 7--UNITED STATES GEOLOGICAL SURVEY
SEC. 50271. UNITED STATES GEOLOGICAL SURVEY 3D ELEVATION PROGRAM.
In addition to amounts otherwise available, there is appropriated
to the Secretary, acting through the Director of the United States
Geological Survey, for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $23,500,000, to remain available
through September 30, 2031, to produce, collect, disseminate, and use
3D elevation data.
PART 8--OTHER NATURAL RESOURCES MATTERS
SEC. 50281. DEPARTMENT OF THE INTERIOR OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Secretary for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $10,000,000, to remain available through
September 30, 2031, for oversight by the Department of the Interior
Office of Inspector General of the Department of the Interior
activities for which funding is appropriated in this subtitle.
Subtitle C--Environmental Reviews
SEC. 50301. DEPARTMENT OF ENERGY.
In addition to amounts otherwise available, there is appropriated
to the Secretary of Energy for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $115,000,000, to remain
available through September 30, 2031, to provide for the hiring and
training of personnel, the development of programmatic environmental
documents, the procurement of technical or scientific services for
environmental reviews, the development of environmental data or
information systems, stakeholder and community engagement, and the
purchase of new equipment for environmental analysis to facilitate
timely and efficient environmental reviews and authorizations.
SEC. 50302. FEDERAL ENERGY REGULATORY COMMISSION.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Federal Energy Regulatory Commission for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$100,000,000, to remain available through September 30, 2031, to
provide for the hiring and training of personnel, the development of
programmatic environmental documents, the procurement of technical or
scientific services for environmental reviews, the development of
environmental data or information systems, stakeholder and community
engagement, and the purchase of new equipment for environmental
analysis to facilitate timely and efficient environmental reviews and
authorizations.
(b) Fees and Charges.--Section 3401(a) of the Omnibus Budget
Reconciliation Act of 1986 (42 U.S.C. 7178(a)) shall not apply to the
costs incurred by the Federal Energy Regulatory Commission in carrying
out this section.
SEC. 50303. DEPARTMENT OF THE INTERIOR.
In addition to amounts otherwise available, there is appropriated
to the Secretary of the Interior for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $150,000,000, to remain
available through September 30, 2026, to provide for the hiring and
training of personnel, the development of programmatic environmental
documents, the procurement of technical or scientific services for
environmental reviews, the development of environmental data or
information systems, stakeholder and community engagement, and the
purchase of new equipment for environmental analysis to facilitate
timely and efficient environmental reviews and authorizations by the
National Park Service, the Bureau of Land Management, the Bureau of
Ocean Energy Management, the Bureau of Reclamation, the Bureau of
Safety and Environmental Enforcement, and the Office of Surface Mining
Reclamation and Enforcement.
TITLE VI--COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
Subtitle A--Air Pollution
SEC. 60101. CLEAN HEAVY-DUTY VEHICLES.
The Clean Air Act is amended by inserting after section 131 of such
Act (42 U.S.C. 7431) the following:
``SEC. 132. CLEAN HEAVY-DUTY VEHICLES.
``(a) Appropriations.--
``(1) In general.--In addition to amounts otherwise available,
there is appropriated to the Administrator for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$600,000,000, to remain available until September 30, 2031, to
carry out this section.
``(2) Nonattainment areas.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $400,000,000, to remain available until September 30,
2031, to make awards under this section to eligible recipients and
to eligible contractors that propose to replace eligible vehicles
to serve 1 or more communities located in an air quality area
designated pursuant to section 107 as nonattainment for any air
pollutant.
``(3) Reservation.--Of the funds appropriated by paragraph (1),
the Administrator shall reserve 3 percent for administrative costs
necessary to carry out this section.
``(b) Program.--Beginning not later than 180 days after the date of
enactment of this section, the Administrator shall implement a program
to make awards of grants and rebates to eligible recipients, and to
make awards of contracts to eligible contractors for providing rebates,
for up to 100 percent of costs for--
``(1) the incremental costs of replacing an eligible vehicle
that is not a zero-emission vehicle with a zero-emission vehicle,
as determined by the Administrator based on the market value of the
vehicles;
``(2) purchasing, installing, operating, and maintaining
infrastructure needed to charge, fuel, or maintain zero-emission
vehicles;
``(3) workforce development and training to support the
maintenance, charging, fueling, and operation of zero-emission
vehicles; and
``(4) planning and technical activities to support the adoption
and deployment of zero-emission vehicles.
``(c) Applications.--To seek an award under this section, an
eligible recipient or eligible contractor shall submit to the
Administrator an application at such time, in such manner, and
containing such information as the Administrator shall prescribe.
``(d) Definitions.--For purposes of this section:
``(1) Eligible contractor.--The term `eligible contractor'
means a contractor that has the capacity--
``(A) to sell, lease, license, or contract for service
zero-emission vehicles, or charging or other equipment needed
to charge, fuel, or maintain zero-emission vehicles, to
individuals or entities that own, lease, license, or contract
for service an eligible vehicle; or
``(B) to arrange financing for such a sale, lease, license,
or contract for service.
``(2) Eligible recipient.--The term `eligible recipient'
means--
``(A) a State;
``(B) a municipality;
``(C) an Indian tribe; or
``(D) a nonprofit school transportation association.
``(3) Eligible vehicle.--The term `eligible vehicle' means a
Class 6 or Class 7 heavy-duty vehicle as defined in section
1037.801 of title 40, Code of Federal Regulations (as in effect on
the date of enactment of this section).
``(4) Greenhouse gas.--The term `greenhouse gas' means the air
pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous
oxide, perfluorocarbons, and sulfur hexafluoride.
``(5) Zero-emission vehicle.--The term `zero-emission vehicle'
means a vehicle that has a drivetrain that produces, under any
possible operational mode or condition, zero exhaust emissions of--
``(A) any air pollutant that is listed pursuant to section
108(a) (or any precursor to such an air pollutant); and
``(B) any greenhouse gas.''.
SEC. 60102. GRANTS TO REDUCE AIR POLLUTION AT PORTS.
The Clean Air Act is amended by inserting after section 132 of such
Act, as added by section 60101 of this Act, the following:
``SEC. 133. GRANTS TO REDUCE AIR POLLUTION AT PORTS.
``(a) Appropriations.--
``(1) General assistance.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $2,250,000,000, to remain available until September
30, 2027, to award rebates and grants to eligible recipients on a
competitive basis--
``(A) to purchase or install zero-emission port equipment
or technology for use at, or to directly serve, one or more
ports;
``(B) to conduct any relevant planning or permitting in
connection with the purchase or installation of such zero-
emission port equipment or technology; and
``(C) to develop qualified climate action plans.
``(2) Nonattainment areas.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $750,000,000, to remain available until September 30,
2027, to award rebates and grants to eligible recipients to carry
out activities described in paragraph (1) with respect to ports
located in air quality areas designated pursuant to section 107 as
nonattainment for an air pollutant.
``(b) Limitation.--Funds awarded under this section shall not be
used by any recipient or subrecipient to purchase or install zero-
emission port equipment or technology that will not be located at, or
directly serve, the one or more ports involved.
``(c) Administration of Funds.--Of the funds made available by this
section, the Administrator shall reserve 2 percent for administrative
costs necessary to carry out this section.
``(d) Definitions.--In this section:
``(1) Eligible recipient.--The term `eligible recipient'
means--
``(A) a port authority;
``(B) a State, regional, local, or Tribal agency that has
jurisdiction over a port authority or a port;
``(C) an air pollution control agency; or
``(D) a private entity that--
``(i) applies for a grant under this section in
partnership with an entity described in any of
subparagraphs (A) through (C); and
``(ii) owns, operates, or uses the facilities, cargo-
handling equipment, transportation equipment, or related
technology of a port.
``(2) Greenhouse gas.--The term `greenhouse gas' means the air
pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous
oxide, perfluorocarbons, and sulfur hexafluoride.
``(3) Qualified climate action plan.--The term `qualified
climate action plan' means a detailed and strategic plan that--
``(A) establishes goals, implementation strategies, and
accounting and inventory practices to reduce emissions at one
or more ports of--
``(i) greenhouse gases;
``(ii) an air pollutant that is listed pursuant to
section 108(a) (or any precursor to such an air pollutant);
and
``(iii) hazardous air pollutants;
``(B) includes a strategy to collaborate with, communicate
with, and address potential effects on low-income and
disadvantaged near-port communities and other stakeholders that
may be affected by implementation of the plan; and
``(C) describes how an eligible recipient has implemented
or will implement measures to increase the resilience of the
one or more ports involved.
``(4) Zero-emission port equipment or technology.--The term
`zero-emission port equipment or technology' means human-operated
equipment or human-maintained technology that--
``(A) produces zero emissions of any air pollutant that is
listed pursuant to section 108(a) (or any precursor to such an
air pollutant) and any greenhouse gas other than water vapor;
or
``(B) captures 100 percent of the emissions described in
subparagraph (A) that are produced by an ocean-going vessel at
berth.''.
SEC. 60103. GREENHOUSE GAS REDUCTION FUND.
The Clean Air Act is amended by inserting after section 133 of such
Act, as added by section 60102 of this Act, the following:
``SEC. 134. GREENHOUSE GAS REDUCTION FUND.
``(a) Appropriations.--
``(1) Zero-emission technologies.--In addition to amounts
otherwise available, there is appropriated to the Administrator for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $7,000,000,000, to remain available until September
30, 2024, to make grants, on a competitive basis and beginning not
later than 180 calendar days after the date of enactment of this
section, to States, municipalities, Tribal governments, and
eligible recipients for the purposes of providing grants, loans, or
other forms of financial assistance, as well as technical
assistance, to enable low-income and disadvantaged communities to
deploy or benefit from zero-emission technologies, including
distributed technologies on residential rooftops, and to carry out
other greenhouse gas emission reduction activities, as determined
appropriate by the Administrator in accordance with this section.
``(2) General assistance.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $11,970,000,000, to remain available until September
30, 2024, to make grants, on a competitive basis and beginning not
later than 180 calendar days after the date of enactment of this
section, to eligible recipients for the purposes of providing
financial assistance and technical assistance in accordance with
subsection (b).
``(3) Low-income and disadvantaged communities.--In addition to
amounts otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $8,000,000,000, to remain
available until September 30, 2024, to make grants, on a
competitive basis and beginning not later than 180 calendar days
after the date of enactment of this section, to eligible recipients
for the purposes of providing financial assistance and technical
assistance in low-income and disadvantaged communities in
accordance with subsection (b).
``(4) Administrative costs.--In addition to amounts otherwise
available, there is appropriated to the Administrator for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $30,000,000, to remain available until September 30,
2031, for the administrative costs necessary to carry out
activities under this section.
``(b) Use of Funds.--An eligible recipient that receives a grant
pursuant to subsection (a) shall use the grant in accordance with the
following:
``(1) Direct investment.--The eligible recipient shall--
``(A) provide financial assistance to qualified projects at
the national, regional, State, and local levels;
``(B) prioritize investment in qualified projects that
would otherwise lack access to financing; and
``(C) retain, manage, recycle, and monetize all repayments
and other revenue received from fees, interest, repaid loans,
and all other types of financial assistance provided using
grant funds under this section to ensure continued operability.
``(2) Indirect investment.--The eligible recipient shall
provide funding and technical assistance to establish new or
support existing public, quasi-public, not-for-profit, or nonprofit
entities that provide financial assistance to qualified projects at
the State, local, territorial, or Tribal level or in the District
of Columbia, including community- and low-income-focused lenders
and capital providers.
``(c) Definitions.--In this section:
``(1) Eligible recipient.--The term `eligible recipient' means
a nonprofit organization that--
``(A) is designed to provide capital, leverage private
capital, and provide other forms of financial assistance for
the rapid deployment of low- and zero-emission products,
technologies, and services;
``(B) does not take deposits other than deposits from
repayments and other revenue received from financial assistance
provided using grant funds under this section;
``(C) is funded by public or charitable contributions; and
``(D) invests in or finances projects alone or in
conjunction with other investors.
``(2) Greenhouse gas.--The term `greenhouse gas' means the air
pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous
oxide, perfluorocarbons, and sulfur hexafluoride.
``(3) Qualified project.--The term `qualified project' includes
any project, activity, or technology that--
``(A) reduces or avoids greenhouse gas emissions and other
forms of air pollution in partnership with, and by leveraging
investment from, the private sector; or
``(B) assists communities in the efforts of those
communities to reduce or avoid greenhouse gas emissions and
other forms of air pollution.
``(4) Zero-emission technology.--The term `zero-emission
technology' means any technology that produces zero emissions of--
``(A) any air pollutant that is listed pursuant to section
108(a) (or any precursor to such an air pollutant); and
``(B) any greenhouse gas.''.
SEC. 60104. DIESEL EMISSIONS REDUCTIONS.
(a) Goods Movement.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $60,000,000, to remain available
until September 30, 2031, for grants, rebates, and loans under section
792 of the Energy Policy Act of 2005 (42 U.S.C. 16132) to identify and
reduce diesel emissions resulting from goods movement facilities, and
vehicles servicing goods movement facilities, in low-income and
disadvantaged communities to address the health impacts of such
emissions on such communities.
(b) Administrative Costs.--The Administrator of the Environmental
Protection Agency shall reserve 2 percent of the amounts made available
under this section for the administrative costs necessary to carry out
activities pursuant to this section.
SEC. 60105. FUNDING TO ADDRESS AIR POLLUTION.
(a) Fenceline Air Monitoring and Screening Air Monitoring.--In
addition to amounts otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$117,500,000, to remain available until September 30, 2031, for grants
and other activities authorized under subsections (a) through (c) of
section 103 and section 105 of the Clean Air Act (42 U.S.C. 7403(a)-
(c), 7405) to deploy, integrate, support, and maintain fenceline air
monitoring, screening air monitoring, national air toxics trend
stations, and other air toxics and community monitoring.
(b) Multipollutant Monitoring Stations.--In addition to amounts
otherwise available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $50,000,000, to remain
available until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103 and section
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405)--
(1) to expand the national ambient air quality monitoring
network with new multipollutant monitoring stations; and
(2) to replace, repair, operate, and maintain existing
monitors.
(c) Air Quality Sensors in Low-income and Disadvantaged
Communities.--In addition to amounts otherwise available, there is
appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $3,000,000, to remain available until September
30, 2031, for grants and other activities authorized under subsections
(a) through (c) of section 103 and section 105 of the Clean Air Act (42
U.S.C. 7403(a)-(c), 7405) to deploy, integrate, and operate air quality
sensors in low-income and disadvantaged communities.
(d) Emissions From Wood Heaters.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $15,000,000, to remain
available until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103 and section
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405) for testing and
other agency activities to address emissions from wood heaters.
(e) Methane Monitoring.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $20,000,000, to remain
available until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103 and section
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405) for monitoring
emissions of methane.
(f) Clean Air Act Grants.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $25,000,000, to remain
available until September 30, 2031, for grants and other activities
authorized under subsections (a) through (c) of section 103 and section
105 of the Clean Air Act (42 U.S.C. 7403(a)-(c), 7405).
(g) Greenhouse Gas and Zero-emission Standards for Mobile
Sources.--In addition to amounts otherwise available, there is
appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $5,000,000, to remain available until September
30, 2031, to provide grants to States to adopt and implement greenhouse
gas and zero-emission standards for mobile sources pursuant to section
177 of the Clean Air Act (42 U.S.C. 7507).
(h) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
SEC. 60106. FUNDING TO ADDRESS AIR POLLUTION AT SCHOOLS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $37,500,000, to remain available until
September 30, 2031, for grants and other activities to monitor and
reduce greenhouse gas emissions and other air pollutants at schools in
low-income and disadvantaged communities under subsections (a) through
(c) of section 103 of the Clean Air Act (42 U.S.C. 7403(a)-(c)) and
section 105 of that Act (42 U.S.C. 7405).
(b) Technical Assistance.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $12,500,000, to remain
available until September 30, 2031, for providing technical assistance
to schools in low-income and disadvantaged communities under
subsections (a) through (c) of section 103 of the Clean Air Act (42
U.S.C. 7403(a)-(c)) and section 105 of that Act (42 U.S.C. 7405)--
(1) to address environmental issues;
(2) to develop school environmental quality plans that include
standards for school building, design, construction, and
renovation; and
(3) to identify and mitigate ongoing air pollution hazards.
(c) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
SEC. 60107. LOW EMISSIONS ELECTRICITY PROGRAM.
The Clean Air Act is amended by inserting after section 134 of such
Act, as added by section 60103 of this Act, the following:
``SEC. 135. LOW EMISSIONS ELECTRICITY PROGRAM.
``(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Administrator for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, to remain
available until September 30, 2031--
``(1) $17,000,000 for consumer-related education and
partnerships with respect to reductions in greenhouse gas emissions
that result from domestic electricity generation and use;
``(2) $17,000,000 for education, technical assistance, and
partnerships within low-income and disadvantaged communities with
respect to reductions in greenhouse gas emissions that result from
domestic electricity generation and use;
``(3) $17,000,000 for industry-related outreach, technical
assistance, and partnerships with respect to reductions in
greenhouse gas emissions that result from domestic electricity
generation and use;
``(4) $17,000,000 for outreach and technical assistance to, and
partnerships with, State, Tribal, and local governments with
respect to reductions in greenhouse gas emissions that result from
domestic electricity generation and use;
``(5) $1,000,000 to assess, not later than 1 year after the
date of enactment of this section, the reductions in greenhouse gas
emissions that result from changes in domestic electricity
generation and use that are anticipated to occur on an annual basis
through fiscal year 2031; and
``(6) $18,000,000 to ensure that reductions in greenhouse gas
emissions are achieved through use of the existing authorities of
this Act, incorporating the assessment under paragraph (5).
``(b) Administration of Funds.--Of the amounts made available under
subsection (a), the Administrator shall reserve 2 percent for the
administrative costs necessary to carry out activities pursuant to that
subsection.
``(c) Definition of Greenhouse Gas.--In this section, the term
`greenhouse gas' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.''.
SEC. 60108. FUNDING FOR SECTION 211(O) OF THE CLEAN AIR ACT.
(a) Test and Protocol Development.--In addition to amounts
otherwise available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $5,000,000, to remain
available until September 30, 2031, to carry out section 211(o) of the
Clean Air Act (42 U.S.C. 7545(o)) with respect to--
(1) the development and establishment of tests and protocols
regarding the environmental and public health effects of a fuel or
fuel additive;
(2) internal and extramural data collection and analyses to
regularly update applicable regulations, guidance, and procedures
for determining lifecycle greenhouse gas emissions of a fuel; and
(3) the review, analysis, and evaluation of the impacts of all
transportation fuels, including fuel lifecycle implications, on the
general public and on low-income and disadvantaged communities.
(b) Investments in Advanced Biofuels.--In addition to amounts
otherwise available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $10,000,000, to remain
available until September 30, 2031, for new grants to industry and
other related activities under section 211(o) of the Clean Air Act (42
U.S.C. 7545(o)) to support investments in advanced biofuels.
(c) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
SEC. 60109. FUNDING FOR IMPLEMENTATION OF THE AMERICAN INNOVATION AND
MANUFACTURING ACT.
(a) Appropriations.--
(1) In general.--In addition to amounts otherwise available,
there is appropriated to the Administrator of the Environmental
Protection Agency for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $20,000,000, to remain
available until September 30, 2026, to carry out subsections (a)
through (i) and subsection (k) of section 103 of division S of
Public Law 116-260 (42 U.S.C. 7675).
(2) Implementation and compliance tools.--In addition to
amounts otherwise available, there is appropriated to the
Administrator of the Environmental Protection Agency for fiscal
year 2022, out of any money in the Treasury not otherwise
appropriated, $3,500,000, to remain available until September 30,
2026, to deploy new implementation and compliance tools to carry
out subsections (a) through (i) and subsection (k) of section 103
of division S of Public Law 116-260 (42 U.S.C. 7675).
(3) Competitive grants.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $15,000,000, to
remain available until September 30, 2026, for competitive grants
for reclaim and innovative destruction technologies under
subsections (a) through (i) and subsection (k) of section 103 of
division S of Public Law 116-260 (42 U.S.C. 7675).
(b) Administration of Funds.--Of the funds made available pursuant
to subsection (a)(3), the Administrator of the Environmental Protection
Agency shall reserve 5 percent for administrative costs necessary to
carry out activities pursuant to such subsection.
SEC. 60110. FUNDING FOR ENFORCEMENT TECHNOLOGY AND PUBLIC INFORMATION.
(a) Compliance Monitoring.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $18,000,000, to remain
available until September 30, 2031, to update the Integrated Compliance
Information System of the Environmental Protection Agency and any
associated systems, necessary information technology infrastructure, or
public access software tools to ensure access to compliance data and
related information.
(b) Communications With ICIS.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $3,000,000, to remain
available until September 30, 2031, for grants to States, Indian
tribes, and air pollution control agencies (as such terms are defined
in section 302 of the Clean Air Act (42 U.S.C. 7602)) to update their
systems to ensure communication with the Integrated Compliance
Information System of the Environmental Protection Agency and any
associated systems.
(c) Inspection Software.--In addition to amounts otherwise
available, there is appropriated to the Administrator of the
Environmental Protection Agency for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $4,000,000, to remain
available until September 30, 2031--
(1) to acquire or update inspection software for use by the
Environmental Protection Agency, States, Indian tribes, and air
pollution control agencies (as such terms are defined in section
302 of the Clean Air Act (42 U.S.C. 7602)); or
(2) to acquire necessary devices on which to run such
inspection software.
SEC. 60111. GREENHOUSE GAS CORPORATE REPORTING.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $5,000,000, to remain available until September
30, 2031, for the Environmental Protection Agency to support--
(1) enhanced standardization and transparency of corporate
climate action commitments and plans to reduce greenhouse gas
emissions;
(2) enhanced transparency regarding progress toward meeting
such commitments and implementing such plans; and
(3) progress toward meeting such commitments and implementing
such plans.
(b) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
SEC. 60112. ENVIRONMENTAL PRODUCT DECLARATION ASSISTANCE.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $250,000,000, to remain available until
September 30, 2031, to develop and carry out a program to support the
development, enhanced standardization and transparency, and reporting
criteria for environmental product declarations that include
measurements of the embodied greenhouse gas emissions of the material
or product associated with all relevant stages of production, use, and
disposal, and conform with international standards, for construction
materials and products by--
(1) providing grants to businesses that manufacture
construction materials and products for developing and verifying
environmental product declarations, and to States, Indian Tribes,
and nonprofit organizations that will support such businesses;
(2) providing technical assistance to businesses that
manufacture construction materials and products in developing and
verifying environmental product declarations, and to States, Indian
Tribes, and nonprofit organizations that will support such
businesses; and
(3) carrying out other activities that assist in measuring,
reporting, and steadily reducing the quantity of embodied carbon of
construction materials and products.
(b) Administrative Costs.--Of the amounts made available under this
section, the Administrator of the Environmental Protection Agency shall
reserve 5 percent for administrative costs necessary to carry out this
section.
(c) Definitions.--In this section:
(1) Greenhouse gas.--The term ``greenhouse gas'' means the air
pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous
oxide, perfluorocarbons, and sulfur hexafluoride.
(2) State.--The term ``State'' has the meaning given to that
term in section 302(d) of the Clean Air Act (42 U.S.C. 7602(d)).
SEC. 60113. METHANE EMISSIONS REDUCTION PROGRAM.
The Clean Air Act is amended by inserting after section 135 of such
Act, as added by section 60107 of this Act, the following:
``SEC. 136. METHANE EMISSIONS AND WASTE REDUCTION INCENTIVE PROGRAM
FOR PETROLEUM AND NATURAL GAS SYSTEMS.
``(a) Incentives for Methane Mitigation and Monitoring.--In
addition to amounts otherwise available, there is appropriated to the
Administrator for fiscal year 2022, out of any money in the Treasury
not otherwise appropriated, $850,000,000, to remain available until
September 30, 2028--
``(1) for grants, rebates, contracts, loans, and other
activities of the Environmental Protection Agency for the purposes
of providing financial and technical assistance to owners and
operators of applicable facilities to prepare and submit greenhouse
gas reports under subpart W of part 98 of title 40, Code of Federal
Regulations;
``(2) for grants, rebates, contracts, loans, and other
activities of the Environmental Protection Agency authorized under
subsections (a) through (c) of section 103 for methane emissions
monitoring;
``(3) for grants, rebates, contracts, loans, and other
activities of the Environmental Protection Agency for the purposes
of providing financial and technical assistance to reduce methane
and other greenhouse gas emissions from petroleum and natural gas
systems, mitigate legacy air pollution from petroleum and natural
gas systems, and provide funding for--
``(A) improving climate resiliency of communities and
petroleum and natural gas systems;
``(B) improving and deploying industrial equipment and
processes that reduce methane and other greenhouse gas
emissions and waste;
``(C) supporting innovation in reducing methane and other
greenhouse gas emissions and waste from petroleum and natural
gas systems;
``(D) permanently shutting in and plugging wells on non-
Federal land;
``(E) mitigating health effects of methane and other
greenhouse gas emissions, and legacy air pollution from
petroleum and natural gas systems in low-income and
disadvantaged communities; and
``(F) supporting environmental restoration; and
``(4) to cover all direct and indirect costs required to
administer this section, prepare inventories, gather empirical
data, and track emissions.
``(b) Incentives for Methane Mitigation From Conventional Wells.--
In addition to amounts otherwise available, there is appropriated to
the Administrator for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $700,000,000, to remain available
until September 30, 2028, for activities described in paragraphs (1)
through (4) of subsection (a) at marginal conventional wells.
``(c) Waste Emissions Charge.--The Administrator shall impose and
collect a charge on methane emissions that exceed an applicable waste
emissions threshold under subsection (f) from an owner or operator of
an applicable facility that reports more than 25,000 metric tons of
carbon dioxide equivalent of greenhouse gases emitted per year pursuant
to subpart W of part 98 of title 40, Code of Federal Regulations,
regardless of the reporting threshold under that subpart.
``(d) Applicable Facility.--For purposes of this section, the term
`applicable facility' means a facility within the following industry
segments, as defined in subpart W of part 98 of title 40, Code of
Federal Regulations:
``(1) Offshore petroleum and natural gas production.
``(2) Onshore petroleum and natural gas production.
``(3) Onshore natural gas processing.
``(4) Onshore natural gas transmission compression.
``(5) Underground natural gas storage.
``(6) Liquefied natural gas storage.
``(7) Liquefied natural gas import and export equipment.
``(8) Onshore petroleum and natural gas gathering and boosting.
``(9) Onshore natural gas transmission pipeline.
``(e) Charge Amount.--The amount of a charge under subsection (c)
for an applicable facility shall be equal to the product obtained by
multiplying--
``(1) the number of metric tons of methane emissions reported
pursuant to subpart W of part 98 of title 40, Code of Federal
Regulations, for the applicable facility that exceed the applicable
annual waste emissions threshold listed in subsection (f) during
the previous reporting period; and
``(2)(A) $900 for emissions reported for calendar year 2024;
``(B) $1,200 for emissions reported for calendar year 2025; or
``(C) $1,500 for emissions reported for calendar year 2026 and
each year thereafter.
``(f) Waste Emissions Threshold.--
``(1) Petroleum and natural gas production.--With respect to
imposing and collecting the charge under subsection (c) for an
applicable facility in an industry segment listed in paragraph (1)
or (2) of subsection (d), the Administrator shall impose and
collect the charge on the reported metric tons of methane emissions
from such facility that exceed--
``(A) 0.20 percent of the natural gas sent to sale from
such facility; or
``(B) 10 metric tons of methane per million barrels of oil
sent to sale from such facility, if such facility sent no
natural gas to sale.
``(2) Nonproduction petroleum and natural gas systems.--With
respect to imposing and collecting the charge under subsection (c)
for an applicable facility in an industry segment listed in
paragraph (3), (6), (7), or (8) of subsection (d), the
Administrator shall impose and collect the charge on the reported
metric tons of methane emissions that exceed 0.05 percent of the
natural gas sent to sale from or through such facility.
``(3) Natural gas transmission.--With respect to imposing and
collecting the charge under subsection (c) for an applicable
facility in an industry segment listed in paragraph (4), (5), or
(9) of subsection (d), the Administrator shall impose and collect
the charge on the reported metric tons of methane emissions that
exceed 0.11 percent of the natural gas sent to sale from or through
such facility.
``(4) Common ownership or control.--In calculating the total
emissions charge obligation for facilities under common ownership
or control, the Administrator shall allow for the netting of
emissions by reducing the total obligation to account for facility
emissions levels that are below the applicable thresholds within
and across all applicable segments identified in subsection (d).
``(5) Exemption.--Charges shall not be imposed pursuant to
paragraph (1) on emissions that exceed the waste emissions
threshold specified in such paragraph if such emissions are caused
by unreasonable delay, as determined by the Administrator, in
environmental permitting of gathering or transmission
infrastructure necessary for offtake of increased volume as a
result of methane emissions mitigation implementation.
``(6) Exemption for regulatory compliance.--
``(A) In general.--Charges shall not be imposed pursuant to
subsection (c) on an applicable facility that is subject to and
in compliance with methane emissions requirements pursuant to
subsections (b) and (d) of section 111 upon a determination by
the Administrator that--
``(i) methane emissions standards and plans pursuant to
subsections (b) and (d) of section 111 have been approved
and are in effect in all States with respect to the
applicable facilities; and
``(ii) compliance with the requirements described in
clause (i) will result in equivalent or greater emissions
reductions as would be achieved by the proposed rule of the
Administrator entitled `Standards of Performance for New,
Reconstructed, and Modified Sources and Emissions
Guidelines for Existing Sources: Oil and Natural Gas Sector
Climate Review' (86 Fed. Reg. 63110 (November 15, 2021)),
if such rule had been finalized and implemented.
``(B) Resumption of charge.--If the conditions in clause
(i) or (ii) of subparagraph (A) cease to apply after the
Administrator has made the determination in that subparagraph,
the applicable facility will again be subject to the charge
under subsection (c) beginning in the first calendar year in
which the conditions in either clause (i) or (ii) of that
subparagraph are no longer met.
``(7) Plugged wells.--Charges shall not be imposed with respect
to the emissions rate from any well that has been permanently shut-
in and plugged in the previous year in accordance with all
applicable closure requirements, as determined by the
Administrator.
``(g) Period.--The charge under subsection (c) shall be imposed and
collected beginning with respect to emissions reported for calendar
year 2024 and for each year thereafter.
``(h) Reporting.--Not later than 2 years after the date of
enactment of this section, the Administrator shall revise the
requirements of subpart W of part 98 of title 40, Code of Federal
Regulations, to ensure the reporting under such subpart, and
calculation of charges under subsections (e) and (f) of this section,
are based on empirical data, including data collected pursuant to
subsection (a)(4), accurately reflect the total methane emissions and
waste emissions from the applicable facilities, and allow owners and
operators of applicable facilities to submit empirical emissions data,
in a manner to be prescribed by the Administrator, to demonstrate the
extent to which a charge under subsection (c) is owed.
``(i) Definition of Greenhouse Gas.--In this section, the term
`greenhouse gas' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.''.
SEC. 60114. CLIMATE POLLUTION REDUCTION GRANTS.
The Clean Air Act is amended by inserting after section 136 of such
Act, as added by section 60113 of this Act, the following:
``SEC. 137. GREENHOUSE GAS AIR POLLUTION PLANS AND IMPLEMENTATION
GRANTS.
``(a) Appropriations.--
``(1) Greenhouse gas air pollution planning grants.--In
addition to amounts otherwise available, there is appropriated to
the Administrator for fiscal year 2022, out of any amounts in the
Treasury not otherwise appropriated, $250,000,000, to remain
available until September 30, 2031, to carry out subsection (b).
``(2) Greenhouse gas air pollution implementation grants.--In
addition to amounts otherwise available, there is appropriated to
the Administrator for fiscal year 2022, out of any amounts in the
Treasury not otherwise appropriated, $4,750,000,000, to remain
available until September 30, 2026, to carry out subsection (c).
``(3) Administrative costs.--Of the funds made available under
paragraph (2), the Administrator shall reserve 3 percent for
administrative costs necessary to carry out this section, to
provide technical assistance to eligible entities, to develop a
plan that could be used as a model by grantees in developing a plan
under subsection (b), and to model the effects of plans described
in this section.
``(b) Greenhouse Gas Air Pollution Planning Grants.--The
Administrator shall make a grant to at least one eligible entity in
each State for the costs of developing a plan for the reduction of
greenhouse gas air pollution to be submitted with an application for a
grant under subsection (c). Each such plan shall include programs,
policies, measures, and projects that will achieve or facilitate the
reduction of greenhouse gas air pollution. Not later than 270 days
after the date of enactment of this section, the Administrator shall
publish a funding opportunity announcement for grants under this
subsection.
``(c) Greenhouse Gas Air Pollution Reduction Implementation
Grants.--
``(1) In general.--The Administrator shall competitively award
grants to eligible entities to implement plans developed under
subsection (b).
``(2) Application.--To apply for a grant under this subsection,
an eligible entity shall submit to the Administrator an application
at such time, in such manner, and containing such information as
the Administrator shall require, which such application shall
include information regarding the degree to which greenhouse gas
air pollution is projected to be reduced in total and with respect
to low-income and disadvantaged communities.
``(3) Terms and conditions.--The Administrator shall make funds
available to a grantee under this subsection in such amounts, upon
such a schedule, and subject to such conditions based on its
performance in implementing its plan submitted under this section
and in achieving projected greenhouse gas air pollution reduction,
as determined by the Administrator.
``(d) Definitions.--In this section:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a State;
``(B) an air pollution control agency;
``(C) a municipality;
``(D) an Indian tribe; and
``(E) a group of one or more entities listed in
subparagraphs (A) through (D).
``(2) Greenhouse gas.--The term `greenhouse gas' means the air
pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous
oxide, perfluorocarbons, and sulfur hexafluoride.''.
SEC. 60115. ENVIRONMENTAL PROTECTION AGENCY EFFICIENT, ACCURATE, AND
TIMELY REVIEWS.
In addition to amounts otherwise available, there is appropriated
to the Environmental Protection Agency for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, $40,000,000, to
remain available until September 30, 2026, to provide for the
development of efficient, accurate, and timely reviews for permitting
and approval processes through the hiring and training of personnel,
the development of programmatic documents, the procurement of technical
or scientific services for reviews, the development of environmental
data or information systems, stakeholder and community engagement, the
purchase of new equipment for environmental analysis, and the
development of geographic information systems and other analysis tools,
techniques, and guidance to improve agency transparency,
accountability, and public engagement.
SEC. 60116. LOW-EMBODIED CARBON LABELING FOR CONSTRUCTION MATERIALS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the Administrator of the Environmental Protection
Agency for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $100,000,000, to remain available until
September 30, 2026, for necessary administrative costs of the
Administrator of the Environmental Protection Agency to carry out this
section and to develop and carry out a program, in consultation with
the Administrator of the Federal Highway Administration for
construction materials used in transportation projects and the
Administrator of General Services for construction materials used for
Federal buildings, to identify and label construction materials and
products that have substantially lower levels of embodied greenhouse
gas emissions associated with all relevant stages of production, use,
and disposal, as compared to estimated industry averages of similar
materials or products, as determined by the Administrator of the
Environmental Protection Agency, based on--
(1) environmental product declarations; or
(2) determinations by State agencies, as verified by the
Administrator of the Environmental Protection Agency.
(b) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
Subtitle B--Hazardous Materials
SEC. 60201. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.
The Clean Air Act is amended by inserting after section 137, as
added by subtitle A of this title, the following:
``SEC. 138. ENVIRONMENTAL AND CLIMATE JUSTICE BLOCK GRANTS.
``(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated to the Administrator for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated--
``(1) $2,800,000,000 to remain available until September 30,
2026, to award grants for the activities described in subsection
(b); and
``(2) $200,000,000 to remain available until September 30,
2026, to provide technical assistance to eligible entities related
to grants awarded under this section.
``(b) Grants.--
``(1) In general.--The Administrator shall use amounts made
available under subsection (a)(1) to award grants for periods of up
to 3 years to eligible entities to carry out activities described
in paragraph (2) that benefit disadvantaged communities, as defined
by the Administrator.
``(2) Eligible activities.--An eligible entity may use a grant
awarded under this subsection for--
``(A) community-led air and other pollution monitoring,
prevention, and remediation, and investments in low- and zero-
emission and resilient technologies and related infrastructure
and workforce development that help reduce greenhouse gas
emissions and other air pollutants;
``(B) mitigating climate and health risks from urban heat
islands, extreme heat, wood heater emissions, and wildfire
events;
``(C) climate resiliency and adaptation;
``(D) reducing indoor toxics and indoor air pollution; or
``(E) facilitating engagement of disadvantaged communities
in State and Federal advisory groups, workshops, rulemakings,
and other public processes.
``(3) Eligible entities.--In this subsection, the term
`eligible entity' means--
``(A) a partnership between--
``(i) an Indian tribe, a local government, or an
institution of higher education; and
``(ii) a community-based nonprofit organization;
``(B) a community-based nonprofit organization; or
``(C) a partnership of community-based nonprofit
organizations.
``(c) Administrative Costs.--The Administrator shall reserve 7
percent of the amounts made available under subsection (a) for
administrative costs to carry out this section.
``(d) Definition of Greenhouse Gas.--In this section, the term
`greenhouse gas' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.''.
Subtitle C--United States Fish and Wildlife Service
SEC. 60301. ENDANGERED SPECIES ACT RECOVERY PLANS.
In addition to amounts otherwise available, there is appropriated
to the United States Fish and Wildlife Service for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$125,000,000, to remain available until expended, for the purposes of
developing and implementing recovery plans under paragraphs (1), (3),
and (4) of subsection (f) of section 4 of the Endangered Species Act of
1973 (16 U.S.C. 1533(f)).
SEC. 60302. FUNDING FOR THE UNITED STATES FISH AND WILDLIFE SERVICE TO
ADDRESS WEATHER EVENTS.
(a) In General.--In addition to amounts otherwise available, there
is appropriated to the United States Fish and Wildlife Service for
fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $121,250,000, to remain available until September 30,
2026, to make direct expenditures, award grants, and enter into
contracts and cooperative agreements for the purposes of rebuilding and
restoring units of the National Wildlife Refuge System and State
wildlife management areas by--
(1) addressing the threat of invasive species;
(2) increasing the resiliency and capacity of habitats and
infrastructure to withstand weather events; and
(3) reducing the amount of damage caused by weather events.
(b) Administrative Costs.--In addition to amounts otherwise
available, there is appropriated to the United States Fish and Wildlife
Service for fiscal year 2022, out of any money in the Treasury not
otherwise appropriated, $3,750,000, to remain available until September
30, 2026, for necessary administrative expenses associated with
carrying out this section.
Subtitle D--Council on Environmental Quality
SEC. 60401. ENVIRONMENTAL AND CLIMATE DATA COLLECTION.
In addition to amounts otherwise available, there is appropriated
to the Chair of the Council on Environmental Quality for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$32,500,000, to remain available until September 30, 2026--
(1) to support data collection efforts relating to--
(A) disproportionate negative environmental harms and
climate impacts; and
(B) cumulative impacts of pollution and temperature rise;
(2) to establish, expand, and maintain efforts to track
disproportionate burdens and cumulative impacts and provide
academic and workforce support for analytics and informatics
infrastructure and data collection systems; and
(3) to support efforts to ensure that any mapping or screening
tool is accessible to community-based organizations and community
members.
SEC. 60402. COUNCIL ON ENVIRONMENTAL QUALITY EFFICIENT AND EFFECTIVE
ENVIRONMENTAL REVIEWS.
In addition to amounts otherwise available, there is appropriated
to the Chair of the Council on Environmental Quality for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$30,000,000, to remain available until September 30, 2026, to carry out
the Council on Environmental Quality's functions and for the purposes
of training personnel, developing programmatic environmental documents,
and developing tools, guidance, and techniques to improve stakeholder
and community engagement.
Subtitle E--Transportation and Infrastructure
SEC. 60501. NEIGHBORHOOD ACCESS AND EQUITY GRANT PROGRAM.
(a) In General.--Chapter 1 of title 23, United States Code, is
amended by adding at the end the following:
``Sec. 177. Neighborhood access and equity grant program
``(a) In General.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $1,893,000,000, to remain
available until September 30, 2026, to the Administrator of the Federal
Highway Administration for competitive grants to eligible entities
described in subsection (b)--
``(1) to improve walkability, safety, and affordable
transportation access through projects that are context-sensitive--
``(A) to remove, remediate, or reuse a facility described
in subsection (c)(1);
``(B) to replace a facility described in subsection (c)(1)
with a facility that is at-grade or lower speed;
``(C) to retrofit or cap a facility described in subsection
(c)(1);
``(D) to build or improve complete streets, multiuse
trails, regional greenways, or active transportation networks
and spines; or
``(E) to provide affordable access to essential
destinations, public spaces, or transportation links and hubs;
``(2) to mitigate or remediate negative impacts on the human or
natural environment resulting from a facility described in
subsection (c)(2) in a disadvantaged or underserved community
through--
``(A) noise barriers to reduce impacts resulting from a
facility described in subsection (c)(2);
``(B) technologies, infrastructure, and activities to
reduce surface transportation-related greenhouse gas emissions
and other air pollution;
``(C) natural infrastructure, pervious, permeable, or
porous pavement, or protective features to reduce or manage
stormwater run-off resulting from a facility described in
subsection (c)(2);
``(D) infrastructure and natural features to reduce or
mitigate urban heat island hot spots in the transportation
right-of-way or on surface transportation facilities; or
``(E) safety improvements for vulnerable road users; and
``(3) for planning and capacity building activities in
disadvantaged or underserved communities to--
``(A) identify, monitor, or assess local and ambient air
quality, emissions of transportation greenhouse gases, hot spot
areas of extreme heat or elevated air pollution, gaps in tree
canopy coverage, or flood prone transportation infrastructure;
``(B) assess transportation equity or pollution impacts and
develop local anti-displacement policies and community benefit
agreements;
``(C) conduct predevelopment activities for projects
eligible under this subsection;
``(D) expand public participation in transportation
planning by individuals and organizations in disadvantaged or
underserved communities; or
``(E) administer or obtain technical assistance related to
activities described in this subsection.
``(b) Eligible Entities Described.--An eligible entity referred to
in subsection (a) is--
``(1) a State;
``(2) a unit of local government;
``(3) a political subdivision of a State;
``(4) an entity described in section 207(m)(1)(E);
``(5) a territory of the United States;
``(6) a special purpose district or public authority with a
transportation function;
``(7) a metropolitan planning organization (as defined in
section 134(b)(2)); or
``(8) with respect to a grant described in subsection (a)(3),
in addition to an eligible entity described in paragraphs (1)
through (7), a nonprofit organization or institution of higher
education that has entered into a partnership with an eligible
entity described in paragraphs (1) through (7).
``(c) Facility Described.--A facility referred to in subsection (a)
is--
``(1) a surface transportation facility for which high speeds,
grade separation, or other design factors create an obstacle to
connectivity within a community; or
``(2) a surface transportation facility which is a source of
air pollution, noise, stormwater, or other burden to a
disadvantaged or underserved community.
``(d) Investment in Economically Disadvantaged Communities.--
``(1) In general.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $1,262,000,000, to remain
available until September 30, 2026, to the Administrator of the
Federal Highway Administration to provide grants for projects in
communities described in paragraph (2) for the same purposes and
administered in the same manner as described in subsection (a).
``(2) Communities described.--A community referred to in
paragraph (1) is a community that--
``(A) is economically disadvantaged, underserved, or
located in an area of persistent poverty;
``(B) has entered or will enter into a community benefits
agreement with representatives of the community;
``(C) has an anti-displacement policy, a community land
trust, or a community advisory board in effect; or
``(D) has demonstrated a plan for employing local residents
in the area impacted by the activity or project proposed under
this section.
``(e) Administration.--
``(1) In general.--A project carried out under subsection (a)
or (d) shall be treated as a project on a Federal-aid highway.
``(2) Compliance with existing requirements.--Funds made
available for a grant under this section and administered by or
through a State department of transportation shall be expended in
compliance with the U.S. Department of Transportation's
Disadvantaged Business Enterprise Program.
``(f) Cost Share.--The Federal share of the cost of an activity
carried out using a grant awarded under this section shall be not more
than 80 percent, except that the Federal share of the cost of a project
in a disadvantaged or underserved community may be up to 100 percent.
``(g) Technical Assistance.--In addition to amounts otherwise
available, there is appropriated for fiscal year 2022, out of any money
in the Treasury not otherwise appropriated, $50,000,000, to remain
available until September 30, 2026, to the Administrator of the Federal
Highway Administration for--
``(1) guidance, technical assistance, templates, training, or
tools to facilitate efficient and effective contracting, design,
and project delivery by units of local government;
``(2) subgrants to units of local government to build capacity
of such units of local government to assume responsibilities to
deliver surface transportation projects; and
``(3) operations and administration of the Federal Highway
Administration.
``(h) Limitations.--Amounts made available under this section shall
not--
``(1) be subject to any restriction or limitation on the total
amount of funds available for implementation or execution of
programs authorized for Federal-aid highways; and
``(2) be used for a project for additional through travel lanes
for single-occupant passenger vehicles.''.
(b) Clerical Amendment.--The analysis for chapter 1 of title 23,
United States Code, is amended by adding at the end the following:
``177. Neighborhood access and equity grant program.''.
SEC. 60502. ASSISTANCE FOR FEDERAL BUILDINGS.
In addition to amounts otherwise available, there is appropriated
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $250,000,000, to remain available until September 30,
2031, to be deposited in the Federal Buildings Fund established under
section 592 of title 40, United States Code, for measures necessary to
convert facilities of the Administrator of General Services to high-
performance green buildings (as defined in section 401 of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17061)).
SEC. 60503. USE OF LOW-CARBON MATERIALS.
(a) Appropriation.--In addition to amounts otherwise available,
there is appropriated for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $2,150,000,000, to remain
available until September 30, 2026, to be deposited in the Federal
Buildings Fund established under section 592 of title 40, United States
Code, to acquire and install materials and products for use in the
construction or alteration of buildings under the jurisdiction,
custody, and control of the General Services Administration that have
substantially lower levels of embodied greenhouse gas emissions
associated with all relevant stages of production, use, and disposal as
compared to estimated industry averages of similar materials or
products, as determined by the Administrator of the Environmental
Protection Agency.
(b) Definition of Greenhouse Gas.--In this section, the term
``greenhouse gas'' means the air pollutants carbon dioxide,
hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and
sulfur hexafluoride.
SEC. 60504. GENERAL SERVICES ADMINISTRATION EMERGING TECHNOLOGIES.
In addition to amounts otherwise available, there is appropriated
to the Administrator of General Services for fiscal year 2022, out of
any money in the Treasury not otherwise appropriated, $975,000,000, to
remain available until September 30, 2026, to be deposited in the
Federal Buildings Fund established under section 592 of title 40,
United States Code, for emerging and sustainable technologies, and
related sustainability and environmental programs.
SEC. 60505. ENVIRONMENTAL REVIEW IMPLEMENTATION FUNDS.
(a) In General.--Chapter 1 of title 23, United States Code, is
further amended by adding at the end the following:
``Sec. 178. Environmental review implementation funds
``(a) Establishment.--In addition to amounts otherwise available,
for fiscal year 2022, there is appropriated to the Administrator, out
of any money in the Treasury not otherwise appropriated, $100,000,000,
to remain available until September 30, 2026, for the purpose of
facilitating the development and review of documents for the
environmental review process for proposed projects through--
``(1) the provision of guidance, technical assistance,
templates, training, or tools to facilitate an efficient and
effective environmental review process for surface transportation
projects and any administrative expenses of the Federal Highway
Administration to conduct activities described in this section; and
``(2) providing funds made available under this subsection to
eligible entities--
``(A) to build capacity of such eligible entities to
conduct environmental review processes;
``(B) to facilitate the environmental review process for
proposed projects by--
``(i) defining the scope or study areas;
``(ii) identifying impacts, mitigation measures, and
reasonable alternatives;
``(iii) preparing planning and environmental studies
and other documents prior to and during the environmental
review process, for potential use in the environmental
review process in accordance with applicable statutes and
regulations;
``(iv) conducting public engagement activities; and
``(v) carrying out permitting or other activities, as
the Administrator determines to be appropriate, to support
the timely completion of an environmental review process
required for a proposed project; and
``(C) for administrative expenses of the eligible entity to
conduct any of the activities described in subparagraphs (A)
and (B).
``(b) Cost Share.--
``(1) In general.--The Federal share of the cost of an activity
carried out under this section by an eligible entity shall be not
more than 80 percent.
``(2) Source of funds.--The non-Federal share of the cost of an
activity carried out under this section by an eligible entity may
be satisfied using funds made available to the eligible entity
under any other Federal, State, or local grant program.
``(c) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Federal Highway Administration.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a State;
``(B) a unit of local government;
``(C) a political subdivision of a State;
``(D) a territory of the United States;
``(E) an entity described in section 207(m)(1)(E);
``(F) a recipient of funds under section 203; or
``(G) a metropolitan planning organization (as defined in
section 134(b)(2)).
``(3) Environmental review process.--The term `environmental
review process' has the meaning given the term in section
139(a)(5).
``(4) Proposed project.--The term `proposed project' means a
surface transportation project for which an environmental review
process is required.''.
(b) Clerical Amendment.--The analysis for chapter 1 of title 23,
United States Code, is further amended by adding at the end the
following:
``178. Environmental review implementation funds.''.
SEC. 60506. LOW-CARBON TRANSPORTATION MATERIALS GRANTS.
(a) In General.--Chapter 1 of title 23, United States Code, is
further amended by adding at the end the following:
``Sec. 179. Low-carbon transportation materials grants
``(a) Federal Highway Administration Appropriation.--In addition to
amounts otherwise available, there is appropriated for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$2,000,000,000, to remain available until September 30, 2026, to the
Administrator to reimburse or provide incentives to eligible recipients
for the use, in projects, of construction materials and products that
have substantially lower levels of embodied greenhouse gas emissions
associated with all relevant stages of production, use, and disposal as
compared to estimated industry averages of similar materials or
products, as determined by the Administrator of the Environmental
Protection Agency, and for the operations and administration of the
Federal Highway Administration to carry out this section.
``(b) Reimbursement of Incremental Costs; Incentives.--
``(1) In general.--The Administrator shall, subject to the
availability of funds, either reimburse or provide incentives to
eligible recipients that use low-embodied carbon construction
materials and products on a project funded under this title.
``(2) Reimbursement and incentive amounts.--
``(A) Incremental amount.--The amount of reimbursement
under paragraph (1) shall be equal to the incrementally higher
cost of using such materials relative to the cost of using
traditional materials, as determined by the eligible recipient
and verified by the Administrator.
``(B) Incentive amount.--The amount of an incentive under
paragraph (1) shall be equal to 2 percent of the cost of using
low-embodied carbon construction materials and products on a
project funded under this title.
``(3) Federal share.--If a reimbursement or incentive is
provided under paragraph (1), the total Federal share payable for
the project for which the reimbursement or incentive is provided
shall be up to 100 percent.
``(4) Limitations.--
``(A) In general.--The Administrator shall only provide a
reimbursement or incentive under paragraph (1) for a project on
a--
``(i) Federal-aid highway;
``(ii) tribal transportation facility;
``(iii) Federal lands transportation facility; or
``(iv) Federal lands access transportation facility.
``(B) Other restrictions.--Amounts made available under
this section shall not be subject to any restriction or
limitation on the total amount of funds available for
implementation or execution of programs authorized for Federal-
aid highways.
``(C) Single occupant passenger vehicles.--Funds made
available under this section shall not be used for projects
that result in additional through travel lanes for single
occupant passenger vehicles.
``(5) Materials identification.--The Administrator shall review
the low-embodied carbon construction materials and products
identified by the Administrator of the Environmental Protection
Agency and shall identify low-embodied carbon construction
materials and products--
``(A) appropriate for use in projects eligible under this
title; and
``(B) eligible for reimbursement or incentives under this
section.
``(c) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Federal Highway Administration.
``(2) Eligible recipient.--The term `eligible recipient'
means--
``(A) a State;
``(B) a unit of local government;
``(C) a political subdivision of a State;
``(D) a territory of the United States;
``(E) an entity described in section 207(m)(1)(E);
``(F) a recipient of funds under section 203;
``(G) a metropolitan planning organization (as defined in
section 134(b)(2)); or
``(H) a special purpose district or public authority with a
transportation function.
``(3) Greenhouse gas.--The term `greenhouse gas' means the air
pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous
oxide, perfluorocarbons, and sulfur hexafluoride.''.
(b) Clerical Amendment.--The analysis for chapter 1 of title 23,
United States Code, is further amended by adding at the end the
following:
``179. Low-carbon transportation materials grants.''.
TITLE VII--COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
SEC. 70001. DHS OFFICE OF CHIEF READINESS SUPPORT OFFICER.
In addition to the amounts otherwise available, there is
appropriated to the Secretary of Homeland Security for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$500,000,000, to remain available until September 30, 2028, for the
Office of the Chief Readiness Support Officer to carry out
sustainability and environmental programs.
SEC. 70002. UNITED STATES POSTAL SERVICE CLEAN FLEETS.
In addition to amounts otherwise available, there is appropriated
to the United States Postal Service for fiscal year 2022, out of any
money in the Treasury not otherwise appropriated, the following
amounts, to be deposited into the Postal Service Fund established under
section 2003 of title 39, United States Code:
(1) $1,290,000,000, to remain available through September 30,
2031, for the purchase of zero-emission delivery vehicles.
(2) $1,710,000,000, to remain available through September 30,
2031, for the purchase, design, and installation of the requisite
infrastructure to support zero-emission delivery vehicles at
facilities that the United States Postal Service owns or leases
from non-Federal entities.
SEC. 70003. UNITED STATES POSTAL SERVICE OFFICE OF INSPECTOR GENERAL.
In addition to amounts otherwise available, there is appropriated
to the Office of Inspector General of the United States Postal Service
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $15,000,000, to remain available through September 30,
2031, to support oversight of United States Postal Service activities
implemented pursuant to this Act.
SEC. 70004. GOVERNMENT ACCOUNTABILITY OFFICE OVERSIGHT.
In addition to amounts otherwise available, there is appropriated
to the Comptroller General of the United States for fiscal year 2022,
out of any money in the Treasury not otherwise appropriated,
$25,000,000, to remain available until September 30, 2031, for
necessary expenses of the Government Accountability Office to support
the oversight of--
(1) the distribution and use of funds appropriated under this
Act; and
(2) whether the economic, social, and environmental impacts of
the funds described in paragraph (1) are equitable.
SEC. 70005. OFFICE OF MANAGEMENT AND BUDGET OVERSIGHT.
In addition to amounts otherwise available, there are appropriated
to the Director of the Office of Management and Budget for fiscal year
2022, out of any money in the Treasury not otherwise appropriated,
$25,000,000, to remain available until September 30, 2026, for
necessary expenses to--
(1) oversee the implementation of this Act; and
(2) track labor, equity, and environmental standards and
performance.
SEC. 70006. FEMA BUILDING MATERIALS PROGRAM.
Through September 30, 2026, the Administrator of the Federal
Emergency Management Agency may provide financial assistance under
sections 203(h), 404(a), and 406(b) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5133(h), 42 U.S.C.
5170c(a), 42 U.S.C. 5172(b)) for--
(1) costs associated with low-carbon materials; and
(2) incentives that encourage low-carbon and net-zero energy
projects.
SEC. 70007. FEDERAL PERMITTING IMPROVEMENT STEERING COUNCIL
ENVIRONMENTAL REVIEW IMPROVEMENT FUND MANDATORY FUNDING.
In addition to amounts otherwise available, there is appropriated
to the Federal Permitting Improvement Steering Council Environmental
Review Improvement Fund, out of any money in the Treasury not otherwise
appropriated, $350,000,000 for fiscal year 2023, to remain available
through September 30, 2031.
TITLE VIII--COMMITTEE ON INDIAN AFFAIRS
SEC. 80001. TRIBAL CLIMATE RESILIENCE.
(a) Tribal Climate Resilience and Adaptation.--In addition to
amounts otherwise available, there is appropriated to the Director of
the Bureau of Indian Affairs for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $220,000,000, to remain
available until September 30, 2031, for Tribal climate resilience and
adaptation programs.
(b) Bureau of Indian Affairs Fish Hatcheries.--In addition to
amounts otherwise available, there is appropriated to the Director of
the Bureau of Indian Affairs for fiscal year 2022, out of any money in
the Treasury not otherwise appropriated, $10,000,000, to remain
available until September 30, 2031, for fish hatchery operations and
maintenance programs of the Bureau of Indian Affairs.
(c) Administration.--In addition to amounts otherwise available,
there is appropriated to the Director of the Bureau of Indian Affairs
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $5,000,000, to remain available until September 30, 2031,
for the administrative costs of carrying out this section.
(d) Cost-sharing and Matching Requirements.--None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
(e) Small and Needy Program.--Amounts made available under this
section shall be excluded from the calculation of funds received by
those Tribal governments that participate in the ``Small and Needy''
program.
(f) Distribution; Use of Funds.--Amounts made available under this
section that are distributed to Indian Tribes and Tribal organizations
for services pursuant to a self-determination contract (as defined in
subsection (j) of section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304(j))) or a self-governance
compact entered into pursuant to subsection (a) of section 404 of the
Indian Self-Determination and Education Assistance Act (25 U.S.C.
5364(a))--
(1) shall be distributed on a 1-time basis;
(2) shall not be part of the amount required by subsections (a)
through (b) of section 106 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5325(a)-(b)); and
(3) shall only be used for the purposes identified under the
applicable subsection.
SEC. 80002. NATIVE HAWAIIAN CLIMATE RESILIENCE.
(a) Native Hawaiian Climate Resilience and Adaptation.--In addition
to amounts otherwise available, there is appropriated to the Senior
Program Director of the Office of Native Hawaiian Relations for fiscal
year 2022, out of any money in the Treasury not otherwise appropriated,
$23,500,000, to remain available until September 30, 2031, to carry
out, through financial assistance, technical assistance, direct
expenditure, grants, contracts, or cooperative agreements, climate
resilience and adaptation activities that serve the Native Hawaiian
Community.
(b) Administration.--In addition to amounts otherwise available,
there is appropriated to the Senior Program Director of the Office of
Native Hawaiian Relations for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $1,500,000, to remain available
until September 30, 2031, for the administrative costs of carrying out
this section.
(c) Cost-sharing and Matching Requirements.--None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
SEC. 80003. TRIBAL ELECTRIFICATION PROGRAM.
(a) Tribal Electrification Program.--In addition to amounts
otherwise available, there is appropriated to the Director of the
Bureau of Indian Affairs for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $145,500,000, to remain available
until September 30, 2031, for--
(1) the provision of electricity to unelectrified Tribal homes
through zero-emissions energy systems;
(2) transitioning electrified Tribal homes to zero-emissions
energy systems; and
(3) associated home repairs and retrofitting necessary to
install the zero-emissions energy systems authorized under
paragraphs (1) and (2).
(b) Administration.--In addition to amounts otherwise available,
there is appropriated to the Director of the Bureau of Indian Affairs
for fiscal year 2022, out of any money in the Treasury not otherwise
appropriated, $4,500,000, to remain available until September 30, 2031,
for the administrative costs of carrying out this section.
(c) Cost-sharing and Matching Requirements.--None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
(d) Small and Needy Program.--Amounts made available under this
section shall be excluded from the calculation of funds received by
those Tribal governments that participate in the ``Small and Needy''
program.
(e) Distribution; Use of Funds.--Amounts made available under this
section that are distributed to Indian Tribes and Tribal organizations
for services pursuant to a self-determination contract (as defined in
subsection (j) of section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304(j))) or a self-governance
compact entered into pursuant to subsection (a) of section 404 of the
Indian Self-Determination and Education Assistance Act (25 U.S.C.
5364(a))--
(1) shall be distributed on a 1-time basis;
(2) shall not be part of the amount required by subsections (a)
through (b) of section 106 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5325(a)-(b)); and
(3) shall only be used for the purposes identified under the
applicable subsection.
SEC. 80004. EMERGENCY DROUGHT RELIEF FOR TRIBES.
(a) Emergency Drought Relief for Tribes.--In addition to amounts
otherwise available, there is appropriated to the Commissioner of the
Bureau of Reclamation for fiscal year 2022, out of any money in the
Treasury not otherwise appropriated, $12,500,000, to remain available
until September 30, 2026, for near-term drought relief actions to
mitigate drought impacts for Indian Tribes that are impacted by the
operation of a Bureau of Reclamation water project, including through
direct financial assistance to address drinking water shortages and to
mitigate the loss of Tribal trust resources.
(b) Cost-sharing and Matching Requirements.--None of the funds
provided by this section shall be subject to cost-sharing or matching
requirements.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.